What is the linear cost function

Reference no: EM131012004

Your friend Herman operates a neighborhood lemonade stand. He asks you to be his financial advisor and wants to know how much lemonade he can make with the $3.27 he happens to have on hand. The only information he can give you is that once last month he spent $2 and made 19 glasses of lemonade, and another time he spent $5 and got 83 glasses of lemonade. You decide to use this data to create a cost function, C(q), giving the cost in dollars of making q glasses of lemonade.

a) You first decide to create a linear cost function based on this data. What is the linear cost function, and how much lemonade can Herman make according to this model?

Reference no: EM131012004

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