Use marginal cost to estimate additional cost of produce 11th unit?
One approach would be calculate the cost for 10 units [x =10]. Then calculate the cost for 11 units. Subtract to get the difference. This is the marginal cost for the 11th unit. If it were a linear cost function, then marginal cost is equal to the slope of the line, but this is not linear. Anyway, I calculated the marginal cost as $7.25 which is none of these. So perhaps they want you to take the derivative of the cost function. X/2 + 2, which is $7.50 when you plug in 11.
Question concerning :Marginal cost, Revenue and Profit....?
(A) Exact cost of of producing 21st machine = Cost of 21 machines - Cost of 20 machines = (2500+60*21-0.4*(21^2)) - (2500+60*20-0.4*(20^2)) = 60 - 0.4*(41*1) = 60 - 16.4 = 43.6. (B) Marginal Cost MC = (d/dx)C(x) = 60 - 0.4*2*x = 60 -0.8*x Approx. Cost of producing 21st machine = 60 - 0.8*20 = 44. Note that here x=20 because marginal cost of producing 21st machine is calculated after the 20th machine has been produced.
What is the relation between marginal product and marginal cost?
Your question is answered suitably by this website:clear answers for common questionsIn economics, marginal cost represents the total cost to produce one additional unit of product or output. Marginal product is the extra output generated by one additional unit of input, such as an additional worker. Marginal cost and marginal product are inversely related to one another: as one increases, the other will automatically decrease proportionally and vice versa.The relationship between marginal cost and marginal product can be attributed to the law of diminishing returns, a central concept in the field of economics. This law states that, as one continues to add resources or inputs to production, the cost per unit will first decline, then bottom out, and finally start to rise again. For example, a company may add a new worker to its manufacturing operations. This new employee helps the firm increase its total output and may also increase marginal product. After too many workers have been added, however, employees may find themselves wasting time waiting to use tools and equipment, or simply crowding one another out, resulting in a higher marginal cost.
If a TFC producing 100 units costs Rs. 30 and the AVC costs Rs. 3, what is the total cost?
TFC always remains fixed, it doesn't vary with the level of output.AVC is the total variable costs per unit of outputSo,AVC=TVC/QTvc=AVC*QHence TVC of 100 units is Rs 300Tc=Tvc+Tfc300+30=330
Suppose the total cost of producing x units of a particular commodity is modeled by C(x)=1/7x^2+4x+80?
and that each unit of the commodity can be sold for p(x)=1/4(60-x) dollars (a) what is the marginal cost? (use differentials to approximate answer) (b) what is the price when the marginal cost is 10 (c) estimate the cost of producing the 11th unit (use differentials to approximate answer) (d) find the actual cost of producing the 11th unit
What is the difference between the marginal rate of transformation and the marginal rate of substitution?
THE MARGINAL RATE OF TRANSFORMATION -The marginal rate of transformation (MRT) is the rate at which one good must be sacrificed in order to produce a single extra unit (or marginal unit) of another good, assuming that both goods require the same scarce inputs.The formula indicates the rate at which a small amount of x can be foregone for a small amount of y.The rate is the opportunity cost of a unit of each good in terms of another. As the number of units of x relative to y changes, the rate of transformation may also change.THE MARGINAL RATE OF SUBSTITUTION -The marginal rate of substitution (MRS) is the amount of a good that a consumer is willing to give up for another good, as long as the new good is equally satisfying.The Law of Diminishing Marginal Rate of Substitution states that (MRS) decreases as one moves down the standard convex-shaped curve, which is the indifference curve.Conclusion-The marginal rate of transformation is similar to the marginal rate of substitution (MRS), these two concepts are not the same. The marginal rate of substitution (MRS) focuses on demand, whereby, MRT focuses on supply. The marginal rate of substitution highlights how many units of x would be considered compensation for one less unit of y, by a given consumer group. For example, a consumer that prefers oranges to apples, may only find equal satisfaction if she receives three apples instead of one orange.
Marginal Cost/ Revenue function-- please help!?
An industrial production process costs C(q) million dollars to produce q million units; these units then sell for R(q) million dollars. If C(2.1)=5.3, R(2.1)=6.5, MC(2.1)=0.3, and MR(2.1)=0.4 calucate the following. A. The approximate change in revenue if production increases from 2.1 to 2.4 million units. B. The approximate change in revenue if production decreases from 2.1 to 2.07 million units. C. The change in profit in part b is about how many dollars D. The change in profit in part c is about how many dollars
Marginal analysis problem?
Suppose the total cost in dollars of manufacturing q units is C(q)=3q^2+q+500 a.) Use marginal analysis to estimate the cost of manufacturing the 41st unit. b.) Compute the actual cost of manufacturing the 41st unit.
Solving marginal cost and total cost?
your assumption on MC * Q = TC is wrong. Marginal cost is the cost to produce the next unit. In your example, there is no fixed cost, but marginal cost can still vary with quantity. You may get a better price on materials when you order more and have a lower marginal cost for your next unit. Or you may not get a discount for a larger order, and you may end up having to pay overtime to employees and have a higher marginal cost as quantity increases. Total cost is Q * average cost, not marginal cost. To find out the marginal cost, you first need to specify at what Q? Imagine Q=10 Total cost is 100/10 or 10, so average cost is 1 At Q = 11, total cost is 121/10 or 12.1 At q=10, the cost of your next unit produced will be total cost at Q 11 minus total cost at Q 10 or 12.1 - 10 = 2.1 MC is 2.1 for the 11th unit produced.