The cost of producing x teddy bears per day is calculated by the formula

C(x) = 100 +40x -0.001x2

a.Find the Marginal Cost Function MC(x) and use it to estimate how fast the cost is changing at a production level of 100 teddy bears.

b.Explain what the answer in (a) means.

c.Calculate the actual cost of producing the 101 st teddy bear

d.Explain the difference between the answers in parts a and c.

e.Is the cost of producing the 101 st teddy bear lower or higher than the average cost of producing the first 100 teddy bears? Justify your answer with a calculation.

Question

The cost of producing x teddy bears per day is calculated by the formula

C(x) = 100 +40x -0.001x2

a.Find the Marginal Cost Function MC(x) and use it to estimate how fast the cost is changing at a production level of 100 teddy bears.

b.Explain what the answer in (a) means.

c.Calculate the actual cost of producing the 101 st teddy bear

d.Explain the difference between the answers in parts a and c.

e.Is the cost of producing the 101 st teddy bear lower or higher than the average cost of producing the first 100 teddy bears? Justify your answer with a calculation.