For the given cost function C(x)=22500+700x+x2 find: a) The cost at the production level 1550 b) The marginal cost at the production level 1550

Answer 1

Given the cost function C(x)=22500+700x+x2

a) The cost at the production level 1550 is equal to C(1550) = 22500 + 700*1550 + 1550*1550 = $3510000

b) The marginal cost at the production level 1550 is equal to the derivative of dC(x)/dx evaluated for x = 1550.

dC(x)/dx = C'(x) = 700 + 2*x

C'(1500) = 700 + 2*1550 = 3800 $/unit