Question

Exercise 6.2

1.
a.
The total cost function is given by C = 100 - 5x + 7x2, find
the average cost and marginal cost.

Answer 1

9514 1404 393

Answer:

• average cost = 7x -5 +100/x
• marginal cost = 14x -5

Explanation:

The average cost is the total cost divided by the number of units produced:

average cost = C/x = 100/x -5 +7x

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The marginal cost is the derivative of the total cost function.

marginal cost = -5 +14x