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ID: 3423772 • Letter: I
Question
I don't get this
Explanation / Answer
Function of milk prodcution ---> w (h) where h is no. of milk in gallons produced
Fixed intial startup cost ---> w(0) ( 0 gallons)
Now cost of producing 180 gallons of milk ---> w(180)
Cost to produce 180 and extra h gallons ---> w( h+180)
Change in cost producing first 180 gallons ----> w(180) -w(0)
Cost to produce 'b'gallons ----> w(b)
Change in cost when production increases to from h to 180: ----> w(180+h) -w(h)
startup cost for producing 0 gallons is 180 dolars ---> w(0) = 180
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