The total cost is represented as C = $0.50x + $4300 and the average cost as avgC = $0.50 + $4300/x
We have been given that,
The variable cost for producing the game = $0.50 per unit
The fixed cost for producing the game = $4300
Let the total cost be denoted by C.
And let x be the number of games produced.
a) Total cost = variable cost + fixed cost
C = $0.50x + $4300
b) Average cost = total cost/number of games produced
= C/x
= ($0.50x + $4300)/x
= $0.50 + $4300/x
Hence the total cost is C = $0.50x + $4300 and the average cost is $0.50 + $4300/x
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