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Pa ntsArmsBrCalc3 3.5.009. me the cost function C(x) is measured in dollars. Com

ID: 2885768 • Letter: P

Question

Pa ntsArmsBrCalc3 3.5.009. me the cost function C(x) is measured in dollars. Complete the following. Assume C(x) 1x +14.9x + 2200 (a) Determine the marginal cost function MC. (b) Evaluate MC(x) for the production level x = 12. MC(12) Interpret MC(12). The estimated cost of producing the E-Select-y unit is (c) Evaluate the actual change in cost by evaluating C(x +1) C() E(13)-E(12) = Compare with the answer in part (b). The actual cost of producing the l-Select-V) unit is $ E-select-? ?l our estimate in part (b).

Explanation / Answer

given

C(x)=(1/2)x2 +14.9x +2200

(a)

MC =C'(x)

=>MC=(1/2)*2x2-1 +14.9*1 + 0

=>MC=x+14.9

(b)

MC(12) =12+14.9

=>MC(12)=26.9

The estimated cost of producing the 13thunit is $ 26.90

(c)

C(13)-C(12)=((1/2)132 +14.9*13 +2200)-((1/2)122 +14.9*12 +2200)

=>C(13)-C(12)=(1/2)132 +14.9*13 -(1/2)122 -14.9*12

=>C(13)-C(12)=27.4

The actual cost of producing the 13th unit is $ 27.40 which is more than our estimate in part(b)

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