Question

Total cost of production of a firm is linear. If the cost of production of 100 units is rs 750 and cost of production of 350 units is rs 1,750, find the maximum number of units that can be produced with a cost budget of rs 5,000

Answer 1

Answer:

900 units

Step-by-step explanation:

Solved by UNITARY METHOD.

Answer 2

Answer:

1000 units

Step-by-step explanation:

100 units = Rs. 750

350 units = Rs. 1750

So total units is 450 units = Rs. 2500

To find max units for Rs. 5000

450 units = Rs. 2500

x = Rs. 5000

x = 5000*450 units/ 2500

x = 1000 units