The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the fiftieth product is $6.30, then it cost $6.30 to increase production from 49 to 50 units of output. Suppose that the marginal cost C (in dollars) to produce x digital cameras is given by Upper C (x) equals 0.03 x squared minus 3 x plus 240C (x) = 0.03x2-3x+240. How many digital cameras should be produced to minimize marginal cost? What is the minimum marginal cost?

Question

Business

Melina Rice

24 March, 12:36

The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the fiftieth product is $6.30, then it cost $6.30 to increase production from 49 to 50 units of output. Suppose that the marginal cost C (in dollars) to produce x digital cameras is given by Upper C (x) equals 0.03 x squared minus 3 x plus 240C (x) = 0.03x2-3x+240. How many digital cameras should be produced to minimize marginal cost? What is the minimum marginal cost?

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Answers (1)

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Baylee Hawkins · Answer 1

Check the explanation

Explanation:

C (x) = 0.06x^2 - 6x + 218

Its a quadratic function, minima would occur at vertex.

x is no. of digital cameras

x = - b/2a = - (-6/2*0.06) = 50 cameras

Minimum marginal cost : C (50) = 0.06 (50) ^2 - 6*50 + 218 = $ 68