Explanation Given information : A manufacturer’s total cost in dollars is C ( q ) = 0.1 q 3 − 0.5 q 2 + 500 q + 200 . The current level of production is 4 units, and the manufacturer plans to decrease this to 3.9. Formula used : If y is function of variable x such as y ( x ) = f ( x ) = a x n ± b x m then d y d x = a n x n -1 ± b m x m -1 . Calculations: The manufacturing cost q units of a commodity (in dollars) is given as C ( q ) = 0.1 q 3 − 0.5 q 2 + 500 q + 200 ........(1) We estimate how the total cost will change when the production level is decreased from 4 units to 3.9 units. Differentiation equation with respect to q, we have d C ( q ) d q =3 ⋅ ( 0.1 q 2 ) − 2 ( 0.5 q ) + 500 $ ⇒ d C = ( 0 .3 q 2 - q + 500 ) d q $ But d q = 3

7th Edition

ISBN: 9781524916817

Author: SMITH KARL J, STRAUSS MONTY J, TODA MAGDALENA DANIELE

Publisher: Kendall Hunt Publishing

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Chapter 3.8, Problem 28PS

To determine

To find:The change in total cost of produced units when level of production is decreased.

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Chapter 3.8, Problem 27PS

Chapter 3.8, Problem 29PS

Chapter 3 Solutions

Calculus

Ch. 3.1 - Prob. 1PS Ch. 3.1 - Prob. 2PS Ch. 3.1 - Prob. 3PS Ch. 3.1 - Prob. 4PS Ch. 3.1 - Prob. 5PS Ch. 3.1 - Prob. 6PS Ch. 3.1 - Prob. 7PS Ch. 3.1 - Prob. 8PS Ch. 3.1 - Prob. 9PS Ch. 3.1 - Prob. 10PS

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The change in total cost of produced units when level of production is decreased.

Solution Summary: The author calculates the change in total cost of produced units when level of production is decreased from 4 units to 3.9 units.

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To find:The change in total cost of produced units when level of production is decreased.

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Chapter 3 Solutions