The marginal cost of a product can be thought of as the cost of producing one ad

Question

The marginal cost of a product can be thought of as the cost of producing one additional unit of output for example it the marginal cost of producing the 50th product is $6 20 it cost S6 20 to increase production from 49 to 50 units of output Suppose the marginal cost C (in dollars) to produce x thousand mp3 players is given by the function C (x) = x^2 - 120x + 7300 How many players should be produced to minimize the marginal cost? What is the minimum marginal cost? To minimize the marginal cost thousand mp3 players should be produced

Explanation / Answer

C'(x) =2x-120=0

=>x=60

C''(x)=2

C"(60)=2>0

Marginal cost is minimum if sales x=60

Minimum cost is

C(60)=3600-7200+7300=3700

Cost increases by 3700 to produce extra 1 thousand mp3 players

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