11.2 The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 36x − 0.01x2. (a) Find the marginal cost function C'(x). C'(x) = Use it to determine how fast the cost is going up (in $) at a production level of 100 teddy bears. $ per teddy bear Compare this with the exact cost of producing the 101st teddy bear (in $). The cost is increasing at a rate of $
11.2 The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 36x − 0.01x2. (a) Find the marginal cost function C'(x). C'(x) = Use it to determine how fast the cost is going up (in $) at a production level of 100 teddy bears. $ per teddy bear Compare this with the exact cost of producing the 101st teddy bear (in $). The cost is increasing at a rate of $
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section12.3: The Various Measures Of Cost
Problem 3QQ
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11.2
The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula
C(x) = 100 + 36x − 0.01x2.
(a)
Find the marginal cost function C'(x).
C'(x) =
Use it to determine how fast the cost is going up (in $) at a production level of 100 teddy bears.
$ per teddy bear
Compare this with the exact cost of producing the 101st teddy bear (in $).
The cost is increasing at a rate of $ per teddy bear. The exact cost of producing the 101st teddy bear is $ . Thus, there is a difference of $ .
(b)
Find the average cost function
C,
and evaluate
C(100)
(in $).C(x)
=
C(100)
= $ per teddy bearWhat does the answer tell you?
The average cost of producing the first hundred teddy bears is $ per teddy bear.
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