[SCHEMES PT3] [200points total]
3. Factory in Omaha
Omaha’s factory has yet another type of cost structure. Its cost function is provided graphically.
Its maximum capacity is 38,000 units per day.
a) At what rate is the cost per unit decreasing for production levels above 12,000?
b) State the function for the domain over [12000, 38000].
c) What is the cost per unit at the production level of 19,000?
Omaha’s city council approved a special growth incentive that decreases the company’s tax
burden for production levels above last year’s average. Explain how this is reflected by the Cost
Function for Omaha’s factory