Question

8. Gail works in a flower​ shop, where she produces 10 floral arrangements per hour. She is paid

​$10 an hour for the first eight hours she works and ​$15 an hour for each additional hour she works. What is the​ firm's cost​ function?

The​ firm's cost function is

A.C=1.00 for q <= 80 (per day) and C = 80 for q>80

B. C=1.00 for q <= 80 (per day) and C = 80 + 1.50q for q>80

C. C=1.00 for q <= 80 (per day) and C = 80 + 1.50(q-80) for q>80

D. C=1.00 for q <= 80 (per day) and C = 1.50 (q-80) for q>80

Answer 1

It is given that Gail produces 10 floral arrangements per hour, and she is paid $10 an hour for the first eight hours.

It means that Gail produces 80 floral arrangements in the first 8 hours which translates into $1 for each floral arrangement in the first 8 hours.

Similarly, after the first 8 hours, Gail is paid $15 an hour for each additional hour she works. This translates into $1.50 for each floral arrangement she produces in an hour after the first 8 hours.

So, the cost function for the firm will be C=1.00 for q<=80(per day) and C=1.50(q-80) for q>80 where q is the number of floral arrangements produced.