cameron estimates that the math class will sell 200 calendars. what will the total cost be

Answer 1

total cost of 200 calendars = 200 times the cost of one calender

=200q where q= the cost of one calendar

UNLESS there are economies of scale

such as a total cost function like C(x)= 400x - x^2 + 50 where x=number of calendars,

50= fixed cost and 400x-x^2 = variable cost

then minimum cost per calendar is when C'(x)=MC= Marginal Cost = 10-2x=0, and x =200

the cost of one calendar will vary decreasing until x=200, then increasing for x>200

for x>200 there are supply chain problems or other increasing costs of production

or the calendar store may offer volume discounts

most products come that way

buy 2 get a 3rd for free

or buy the jumbo box with 200 calendars and get 20% off the regular calendar price, then discount price =160x as you pay only 80% 0f the regular 200x price