In the previous Problem Set question, we started looking at the cost function C (x), the cost of a firm producing z 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 (z), then the cost of computing h additionial items is C (x+h). The average cost of those h items (C(r+h)–C(x)) is . 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, h i.e. the derivative C' (z). Use this function in the model below for the Marginal Cost function MC (x). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 0.043 – 20z+ 350. (a) Find the marginal cost function.
In the previous Problem Set question, we started looking at the cost function C (x), the cost of a firm producing z 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 (z), then the cost of computing h additionial items is C (x+h). The average cost of those h items (C(r+h)–C(x)) is . 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, h i.e. the derivative C' (z). Use this function in the model below for the Marginal Cost function MC (x). Problem Set question: The cost, in dollars, of producing z units of a certain item is given by C (z) = 0.043 – 20z+ 350. (a) Find the marginal cost function.
Micro Economics For Today
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Author:Tucker, Irvin B.
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Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 10SQP
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Transcribed Image Text:Introduction to Calculus in Economics (continued):
In the previous Problem Set question, we started looking at the cost function C (x), the cost of a firm producing z 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
(C(x+h)-C(x))
is
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,
h
i.e. the derivative C' (x). Use this function in the model below for the Marginal Cost function MC (x).
Problem Set question:
The cost, in dollars, of producing a units of a certain item is given by
C (2) = 0.04a3 – 20z+ 350.
(a) Find the marginal cost function.
a
ab
b
|a|
sin (a)
a
MC (z) = |
(b) Find the marginal cost when 60 units of the item are produced.
The marginal cost when 60 units are produced is $ Number
(c) Find the actual cost of increasing production from 60 units to 61 units.
The actual cost of increasing production from 60 units to 61 units is $ Number
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