Answer to Question #111513 in Macroeconomics for Wealth

Question

200 units of a product cost #800 and 400 units cost #1200. Find the fixed cost and the cost of producing 800 units.

Answer 1

Let's fixed cost be x, and variable cost be y. Now we can write two equations:

$x+200y=400$

$x+400y=1200$

By solving that equations we find x=400, y=2.

So, fixed cost is 400.

The cost of producing 800 units is:

$400+2\times800=2000.$