The given graph shows the cost C, in thousands of dollars, of a production run for a product when x machines are used. Estimate the company's fixed cost of production to the nearest thousand dollars, and determine the number of machines that will result in maximum cost for the company.
A)fixed production cost: $6,000 maximum cost when 4 machines used
B)fixed production cost: $9,000 maximum cost when 4 machines used
C)fixed production cost: $5,000 maximum cost when 4 machines used
D)fixed production cost: $6,000 maximum cost when 6 machines used
E)fixed production cost: $5,000 maximum cost when 6 machines used

Question

The given graph shows the cost C, in thousands of dollars, of a production run for a product when x machines are used. Estimate the company's fixed cost of production to the nearest thousand dollars, and determine the number of machines that will result in maximum cost for the company. ​  ​
A)fixed production cost: $6,000 maximum cost when 4 machines used 
B)fixed production cost: $9,000 maximum cost when 4 machines used 
C)fixed production cost: $5,000 maximum cost when 4 machines used 
D)fixed production cost: $6,000 maximum cost when 6 machines used 
E)fixed production cost: $5,000 maximum cost when 6 machines used

Quizplus · Accepted Answer

To estimate the fixed production cost, we need to find the y-intercept of the graph, which is the value of C when x equals zero. From the graph, we can see that when x is zero, C is approximately 5,000, so the fixed production cost is $5,000 (rounded to the nearest thousand dollars). 
To find the number of machines that will result in maximum cost for the company, we need to look for the peak of the graph. From the graph, we can see that the maximum cost occurs when x is approximately 4, so the answer is C) fixed production cost: $5,000 maximum cost when 4 machines used.

The Given Graph Shows the Cost C, in Thousands of Dollars