Question
The marginal cost of production is MC=0.3x+4, determine
the cost involved to increase production from 70 to 100 units.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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