Problem 1. Marginal Cost and Revenue Imagine a company, Geneseo Widget Works, that makes widgets. Suppose the cost (in dollars) of making w widgets, C(w, is C(w) (1000 + 2w)/ w Economists call the derivative of cost with respect to number of widgets, C'íw), the marginal cost. Question 1. What is Geneseo Widget Works' marginal cost function? At any given production level, w, C(w) is basically the additional cost of making one more widget, ie, of increasing production from w widgets to w+1. Question 2. If Geneseo Widget Works makes 10 widgets, what is the marginal cost, i.e., the added cost of making an 11th widget? Suppose the demand for widgets is such that the revenue (in dollars) that Geneseo Widget Works can make from w widgets is R/w) 2000-(w/1014 Economists call the derivative of revenue with respect to number of widgets the marginal revenue. Analogous to marginal cost, marginal revenue is basically how much additional money Geneseo Widget Works can earn by selling one more widget. Question 3. What is Geneseo Widget Works' marginal revenue function?

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Equations and inequalities describe the relationship between two mathematical expressions.

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