Chapter 5.1, Problem 69E

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10th Edition

Ron Larson

ISBN: 9781305860919

Textbook Problem

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**Cost** A company produces a product for which the marginal cost of producing x units is modeled by

(a) Find the total cost function and the average cost function.

(b) Find the total cost of producing 50 units.

(c) In part (b), how much of the total cost is fixed? How much is variable? Give examples of fixed costs associated with the manufacturing of a product. Give examples of variable costs.

**(a)**

To determine

**To calculate:** The total cost function and the average cost function for the model

Explanation

**Given Information:**

The provided model for the marginal cost to produce

**Formula used:**

The simple power rule of integration

The average cost is given as,

**Calculation:**

Consider the model of the marginal cost and number of units,

Integrate the provided model, use the sum or difference rule of integration,

Integrate further use the simple power rule of integration,

The fixed cost means the cost to produce zero units

**(b)**

To determine

**To calculate:** The total cost to produce

**(c)**

To determine

**To calculate:** The fixed cost in the total cost and the variable cost in the total cost and also gives example of fixed costs and variable costs that are associated with the company.

Sect-5.1 P-1CPSect-5.1 P-2CPSect-5.1 P-3CPSect-5.1 P-4CPSect-5.1 P-5CPSect-5.1 P-6CPSect-5.1 P-7CPSect-5.1 P-8CPSect-5.1 P-1SWUSect-5.1 P-2SWU

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P-20TYSCh-5 P-21TYSCh-5 P-22TYS

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