Question

At a production level of 1000 items, the total cost is $6000 and the marginal cost is $35. Use this information to estimate the costs of a) 1001 items b) 999 items and c) 900 items.

Answer 1

marginal cost is the derivative of cost

C(1000) = 6000

C'(1000) = 35

form your tangent line for your estimations

Answer 2

So would a) be 6035?

Answer 3

thats the estimate yes

Answer 4

so would b) be 6000-35?

Answer 5

yes

Answer 6

another way to look at marginal cost, is the cost it takes to produce 1 more item

Answer 7

so would c) be 2500?

Answer 8

yep! got it! thanks!

Answer 9

:) good luck