Question

The average cost of producing x units of a commodity is c(x)=21.4-0.0002x
Find the marginal cost at a production level of 1000 units. In practical terms, what is the meaning of your answer?

Answer 1

Hmm I wasn't sure what marginal cost was, so I Googled it.

"Marginal cost is the change in total cost when another unit is produced;
average cost is the total cost divided by the number of goods produced."

So marginal cost is the change at a specific moment,
after a unit is sold.
We can think of this as instantaneous change.

So derivative, ya? :)\[\large\rm c'(1000)=?\]

Answer 2

sorry I've been helping someone

Answer 3

so c'(x)= .0002?

Answer 4

The one thing im confused about is there is no x left so??? What do you do with the 1000? Or can you put that in first?

Answer 5

\[\large\rm c(x)=21.4-0.0002x\]So\[\large\rm c'(x)=-0.0002\]right? with the negative?
Evaluating at 1000 gives us,\[\large\rm c'(1000)=-0.0002\]

Answer 6

What is the meaning of this value?
Hmmm thinking.

Answer 7

So that is just the answer? That just seemed so weird!

Answer 8

Omg someone posted something nasty on here :/

Answer 9

Well recall that polynomials always decrease by `one degree` when you take derivative.

We have a straight line, (first degree x), which turns into a constant when differentiated. Constant means unchanging, no matter what x you plug in.

Answer 10

I'm not really sure how to interpret the meaning D:
So the marginal cost to produce 1000 units is decreasing by 2 hundredths of a cent per unit produced.

Something like that maybe? Bahhh I dunno.

Answer 11

hundredths?

Answer 12

This is a penny .01
This is a tenth of a penny .001
This is a hundredth of a penny .0001

Answer 13

ummmm?

Answer 14

I thought one hundredth is 2 after decimal

Answer 15

one hundredth of a whole unit is 2 after the decimal.

But we're not saying that 1 is a penny
we're saying that .01 is a penny

Answer 16

ohhhhhhhhhhhhhhhhhhh okayyyyyyy

Answer 17

so we have to move two places from here .01
ya? :o

Answer 18

yes :) this makes sense now wow I feel silly

Answer 19

:3

Answer 20

it doesn't really help that I haven't taken economics yet!!!

Answer 21

Same D:::

Answer 22

I'm not excited to take it I heard its kinda dumb

Answer 23

Well thank you for the help I might be on asking more questions later