A linear cost function is C(x) = 5x + 900. (Assume C is measured in dollars.) (a) What are the slope and the C-intercept? slope     ? C-intercept     ? (b) What is the marginal cost MC ? MC = ?

Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter2: Functions
Section2.4: Average Rate Of Change Of A Function
Problem 4.2E: bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.
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A linear cost function is C(x) = 5x + 900. (Assume C is measured in dollars.)

(a) What are the slope and the C-intercept?
slope     ?
C-intercept     ?


(b) What is the marginal cost MC ?

MC = ?

What does the marginal cost mean? (multiple choice)
A. If production is increased by this many units, the cost increases by $1.
B. Each additional unit produced reduces the cost by this much (in dollars).  C. If production is increased by this many units, the cost decreases by $1.
D. Each additional unit produced costs this much (in dollars).

(c) What are the fixed costs?
$ ?

(d) How are your answers to parts (a), (b), and (c) related?
 
A. slope = fixed costs, and C-intercept = marginal cost
B. slope/C-intercept = marginal cost
C.  C-intercept/slope = marginal cost
D. slope = marginal cost, and C-intercept = fixed costs

(e) What is the cost of producing one more item if 50 are currently being produced?
$ ?

What is the cost of producing one more item if 100 are currently being produced?
$ ?
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