In the previous Problem Set question, we started looking at the cost function C (2), the cost of a firm producing a items. An important microeconomics concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item. If the current production level is z items with cost C' (x), then the cost of computing h additionial items is C (x + h). The average cost of those h items is (C(r+h)-C(x)) As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h → 0, i.e. the derivative C' (æ). Use this function in the model below for the Marginal Cost function MC (x) Problem Set question: The cost, in dollars, of producing æ units of a certain item is given by C (x) = 0.02a3 - 15a +200. (a) Find the marginal cost function. va al sin (a) 0.06. -15
In the previous Problem Set question, we started looking at the cost function C (2), the cost of a firm producing a items. An important microeconomics concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item. If the current production level is z items with cost C' (x), then the cost of computing h additionial items is C (x + h). The average cost of those h items is (C(r+h)-C(x)) As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h → 0, i.e. the derivative C' (æ). Use this function in the model below for the Marginal Cost function MC (x) Problem Set question: The cost, in dollars, of producing æ units of a certain item is given by C (x) = 0.02a3 - 15a +200. (a) Find the marginal cost function. va al sin (a) 0.06. -15
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
Related questions
Question
Expert Solution
Step 1
The derivative of with respect to x is calculated using the formula: . The change in the total cost, when one additional unit of a product is sold is called the marginal cost.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill