LO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost and average cost. Suppose that Patrick's Handmade Puppets has a production cost that is given by C(x) = 2,000 + 130x - 0.6x2 + 0.002x3 dollars (0 sx< 400) | when x puppets are produced in a day. When 100 puppets are produced, the average cost per puppet is $110.00 and the marginal cost when 100 puppets are produced is S70.00. Based on this information, choose the appropriate statement below. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is increasing. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is neither increasing nor decreasing. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is 110÷70%3%21.57. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost to per puppets is decreasing.

LO 11.2: I can calculate marginal cost, revenue, and profit and distinguish between marginal cost and average cost. Suppose that Patrick's Handmade Puppets has a production cost that is given by C(x) = 2,000 + 130x - 0.6x2 + 0.002x3 dollars (0 sx< 400) | when x puppets are produced in a day. When 100 puppets are produced, the average cost per puppet is $110.00 and the marginal cost when 100 puppets are produced is S70.00. Based on this information, choose the appropriate statement below. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is increasing. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is neither increasing nor decreasing. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost per puppet is 110÷70%3%21.57. O Since the marginal cost at a production level of 100 puppets is lower than the average cost, then the average cost to per puppets is decreasing.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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