Questions: The cost C, in millions of dollars, of producing q items is given by C=4.1+0.002 q. Interpret the 4.1 and the 0.002 in terms of production. Interpretation of 4.1: NOTE: Check all the correct interpretations. The 4.1 represents the fixed cost of 4.1 million. The 4.1 represents the fixed cost of 4.1. The 4.1 is the cost of producing zero units. The 4.1 is the cost in million of producing zero units.

Solution Steps

To interpret the constants in the cost function \( C = 4.1 + 0.002q \):

1. The constant term 4.1 represents the fixed cost of production, which is the cost incurred even when no items are produced. Since the cost is given in millions of dollars, 4.1 represents a fixed cost of $4.1 million.
2. The coefficient 0.002 represents the variable cost per item produced. This means that for each additional item produced, the cost increases by $0.002 million (or $2000).

The given cost function is \( C = 4.1 + 0.002q \). The term 4.1 is a constant, which represents the fixed cost of production. This is the cost incurred even when no items are produced. Since the cost is given in millions of dollars, 4.1 represents a fixed cost of \$4.1 million.

The coefficient of \( q \) in the cost function is 0.002. This represents the variable cost per item produced. For each additional item produced, the cost increases by \$0.002 million (or \$2000).

The fixed cost of \$4.1 million is the cost of producing zero units. This means that even if no items are produced, the company incurs a cost of \$4.1 million.

The variable cost per item is \$0.002 million. This means that for each additional item produced, the total cost increases by \$0.002 million.

Final Answer