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کشاورزی::
هزینه متغیر کل
equivalent to minimizing the total variable cost.
Whatever plant speed produces the lowest average variable cost (the lowest cost in S/Lb) will be the same plant speed that has the lowest total variable cost for producing the quantity specified in the contract If the plant will only be run at a single speed for the entire time that it takes to fulfill the contract, then the relationship between the quantity in
The total variable cost for the contracted quantity is simply the product of the hourly variable cost function found in equation (2.1), VC( ), and the hours it takes to complete the contract.
Mathematically, the total variable cost for the contract is
This is £7*, the plant speed that minimizes the total variable cost of fulfilling the contract.
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