New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    The marginal cost of production is MC=0.3x+4, determine

    the cost involved to increase production from 70 to 100 units.
    A 900 Correct Answer Incorrect Answer
    B 85 Correct Answer Incorrect Answer
    C 885 Correct Answer Incorrect Answer
    D 880 Correct Answer Incorrect Answer

    Solution

    Find total cost function by integrating MC function. Then find total cost at 100 units and 70 units and then take their difference. TC = 0.3x^2 / 2 + 4x At x = 70, TC = 1015 At x = 100, TC = 1900 So, difference = 1900 – 1015 = 885

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