A manufacturer of mountain bikes has the following marginal cost function: C?(q)

Question

A manufacturer of mountain bikes has the following marginal cost function:
C?(q) = 550
0.8q+4
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions just above the boxes on pages 126 and 127 of your textbook.
a) If the fixed cost in producing the bicycles is $2700, find the total cost to produce 25 bicycles
b) If the bikes are sold for $150 each, what is the profit (or loss) on the first 25 bikes?
c) What is the marginal profit on bike number 26?

Explanation / Answer

(a) C(30) = (550/(.8x30+4)) then add that to the fixed cost. 22.9 + 2700 = $2722.90 isn't the marginal cost + fixed cost = total cost? anyway thats wat i did. Unless C'(q) is the differential of C(q) then i have to integrate the eqn. That mean C(q) = (550/0.8) ln(0.8q + 4) + k where k is a constant. so for C(25) = 687.5 ln(20+4) + 2700 Hence total cost = $4884.91

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