Question

Asked Mar 5, 2019

Suppose that the cost function for a commodity is

C(x) = 60 + x^{2} dollars.

(a) Find the marginal cost at

x = 3 units.

The cost to produce the 4th unit is predicted to be?

(b) Calculate

C(4) − C(3)

to find the actual cost of producing 1 additional unit. Step 1

To evaluate marginal cost using differentiation

Step 2

(a) Marginal cost is the cost of production of one unit at the specific point x. It is obtained by evaluating the derivative of the cost function C(x) at the required value.

Step 3

From the definition of marginal cost and the calculation above, the predic...

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