Chapter 5, Section 5.5, Question 008 The marginal cost q (in dollars per unit) o

Question

Chapter 5, Section 5.5, Question 008 The marginal cost q (in dollars per unit) of producing units is given in the following table. q 0 100 200 300 400 500 600 C) 2519 16 19 23 33 42 Round your answers to the nearest integers (a) If fixed cost The cost of producing 400 units is is $19,000, estimate the total cost of producing 400 units. (b) To the nearest dollar, how much would the total cost increase if production were increased one unit, to 401 The total cost increase if production were increased one unit is the tolerance is +/-2% units?

Explanation / Answer

a)

total cost will be = fixed cost + number of units * cost per unit

= 19000+400*23

= $28,200

b)

Marginal cost = $23

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.