A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation c(9₁) 9₁. √0.59² +59₁ 10 a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You may use the graphical calculator to find zeros of a polynomial function if needed. b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of 1.75. = We now denote q2 as the amount produced of the second version. The equation of the cost function c(9₂) for the second version is unknown. We do know that the current cost for a production of 2 units of the second version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 9₂ = 2 is equal to 1.88.
A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation c(9₁) 9₁. √0.59² +59₁ 10 a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You may use the graphical calculator to find zeros of a polynomial function if needed. b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of 1.75. = We now denote q2 as the amount produced of the second version. The equation of the cost function c(9₂) for the second version is unknown. We do know that the current cost for a production of 2 units of the second version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 9₂ = 2 is equal to 1.88.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the
first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation
c(q₁) =
9₁ · √√0.59² +59₁
10
a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You
may use the graphical calculator to find zeros of a polynomial function if needed.
b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of
1.75.
We now denote 92 as the amount produced of the second version. The equation of the cost function c(9₂)
for the second version is unknown. We do know that the current cost for a production of 2 units of the second
version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 92 = 2
is equal to 1.88.
c) Give a linear approximation ƒ of the cost function c(9₂) for production amounts close to q₂ = 2.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fda1ab5de-bf4d-4028-8a6d-57425af6cfb9%2F2205fac3-1277-497f-bce5-985e0808e7e9%2Fmhngn7uq_processed.png&w=3840&q=75)
Transcribed Image Text:A company produces two different versions of a certain product. Let q₁ indicate the amount produced of the
first version. The cost function c(q₁) for the first version (expressed in euros) can be described by the equation
c(q₁) =
9₁ · √√0.59² +59₁
10
a) For which value(s) of q₁ is the instantaneous rate of change of the cost function equal to 1.75? You
may use the graphical calculator to find zeros of a polynomial function if needed.
b) Using the result from a), give a precise economic meaning for the instantaneous rate of change of
1.75.
We now denote 92 as the amount produced of the second version. The equation of the cost function c(9₂)
for the second version is unknown. We do know that the current cost for a production of 2 units of the second
version is 50 monetary units and that the elasticity of the cost in terms of the produced amount when 92 = 2
is equal to 1.88.
c) Give a linear approximation ƒ of the cost function c(9₂) for production amounts close to q₂ = 2.
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