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

ID: 3037572 • Letter: T

Question

The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the fiftieth product is $6.30, then it cost $6.30 to increase production from 49 to 50 units of output.

Suppose that the marginal cost C (in dollars) to produce x digital cameras is given by C(x)= 0.06x2-6x+218. How many digital cameras should be produced to minimize marginal cost? What is the minimum marginal cost?

___ digital cameras should be produced to minimize marginal cost

The minimum marginal cost is ___

Explanation / Answer

C(x) = 0.06x^2 - 6x + 218

Its a quadratic function , minima would occur at vertex.

x is no. of digital cameras

x = -b/2a = -(-6/2*0.06) = 50 cameras

Minium marginal cost : C(50) = 0.06(50)^2 - 6*50 + 218 = $ 68