The marginal cost (q) (in dollars per unit) of producing units is given in the f

Question

The marginal cost (q) (in dollars per unit) of producing units is given in the following table. q 0 100 200 300 400 500 600 C () 292320 2228 38 50 Round your answers to the nearest integers. (a) If fixed cost is $18,000, estimate the total cost of producing 400 units. The cost of producing 400 units is $ 401 units? (b) To the nearest dollar, how much would the total cost increase if production were increased one unit, to The total cost increase if production were increased one unit is the absolute tolerance is +/-300

Explanation / Answer

Answer
a)
The total cost=fixed cost+variable cost
Variable cost=sum of marginal costs
TC=18000+100*23+100*20+100*22+100*28
=27300
The total cost is $27300

b)
MC is the cost of one more unit=$38

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.