Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started looking at the cost function C(2), the cost of a firm producing items. An important microeconomics concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item. If the current production level is az items with cost C(z), then the cost of computing ħ additional items is C(z+h). The average cost of those hitems is (C(x+h)-C(x)) As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h→0, i.e. the h derivative C¹ (z). Use this function in the model below for the Marginal Cost function MC (2). Problem Set question: The cost, in dollars, of producing a units of a certain item is given by (a) Find the marginal cost function. MC (2) - ab b √a a k sin (a) C(z)=0.02³-20+450. (b) Find the marginal cost when 40 units of the item are produced. The marginal cost when 40 units are produced is $ Number (c) Find the actual cost of increasing production from 40 units to 41 units. The actual cost of increasing production from 40 units to 41 units is $ Number E
Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started looking at the cost function C(2), the cost of a firm producing items. An important microeconomics concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item. If the current production level is az items with cost C(z), then the cost of computing ħ additional items is C(z+h). The average cost of those hitems is (C(x+h)-C(x)) As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h→0, i.e. the h derivative C¹ (z). Use this function in the model below for the Marginal Cost function MC (2). Problem Set question: The cost, in dollars, of producing a units of a certain item is given by (a) Find the marginal cost function. MC (2) - ab b √a a k sin (a) C(z)=0.02³-20+450. (b) Find the marginal cost when 40 units of the item are produced. The marginal cost when 40 units are produced is $ Number (c) Find the actual cost of increasing production from 40 units to 41 units. The actual cost of increasing production from 40 units to 41 units is $ Number E
Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
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Chapter2: Second-order Linear Odes
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Transcribed Image Text:Introduction to Calculus in Economics (continued):
In the previous Problem Set question, we started looking at the cost function C(z), the cost of a firm producing items. An important microeconomics
concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item.
If the current production level is items with cost C(z), then the cost of computing ħ additional items is C (1+h). The average cost of those h items is
(C(x+h)-C(x))
As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h→0, i.e. the
h
derivative C² (2). Use this function in the model below for the Marginal Cost function MC(z).
Problem Set question:
The cost, in dollars, of producing units of a certain item is given by
(a) Find the marginal cost function.
MC (2)=
a
b
√ā a
k
sin (a)
C(z) = 0.02r³ - 20z + 450.
(b) Find the marginal cost when 40 units of the item are produced.
The marginal cost when 40 units are produced is $ Number
(c) Find the actual cost of increasing production from 40 units to 41 units.
The actual cost of increasing production from 40 units to 41 units is $ Number
E
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