What is the marginal cost From: company buys and retails baseball caps, and?? th

Question

What is the marginal cost
From: company buys and retails baseball caps, and?? the total cost function is linear. The total cost for?? 200 caps is $2690, and the total cost for 500 caps is?? $3530. What is the marginal cost, which is the rate
Source:ISBN: 0321849140 | Title: College Algebra in Context | Publisher: Addison Wesley

Explanation / Answer

C(x)=ax+b where C(x) is the total cost and x is the number of baseball caps. C(200)=200a+b=2690 => b=2690 -200a C(500)=500a+b=3530 500a+2690-200a=3530 => 300a+2690=3530 =>300a=840 so a=2.8 b=2690-200*2.8=2690-560=2130 So C(x)=2.8x+2130 The marginal cost is the derivative of C(x) with respect to x C'(x)=2.8 so the marginal cost is $2.8 per unit.

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