Total revenues for the month were $80,000. Total fixed costs were $40,000. Total variable costs were $20,000.
a)Write the algebraic expression for the cost function.
b)Describe the general assumptions of the cost function.
c)Discuss reasons why a cost function might provide poor estimates of future costs.

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The Answer of Total revenues for the month were $80,000. Total fixed costs were $40,000. Total variable costs were $20,000.
a)Write the algebraic expression for the cost function.
b)Describe the general assumptions of the cost function.
c)Discuss reasons why a cost function might provide poor estimates of future costs.

Total Revenues for the Month Were $80,000