The marginal cost for printing a paperback book at a small publishing company is c(p) = $0.016 per page where p is the number of pages in the book A 570 page book has a $20.81 production cost.

Question

Find the production cost function C(p).

Answer 1

Marginal Cost = MC = c(p) = 0.016

Total Cost = TC = C(p) = 0.016p + FC where FC = Fixed Cost, 0.016p = VC = Variable Cost

C(570) = 20.81 = 0.016(570) + FC

FC= 20.81 - 9.12 = 11.69

C(p) = 0.016p + 11.69