**Cost Calculation for Producing Appliances**Suppose that the dollar cost of producing $ x $ appliances is given by the function:\[ c(x) = 1000 + 70x - 0.1x^2 \]### Tasks:**a.** Find the average cost per appliance of producing the first 100 appliances.**b.** Find the marginal cost when 100 appliances are produced.**c.** Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly.---The average cost per appliance of producing the first 100 appliances is $ \_\_\_ / appliance. (Round to the nearest cent as needed.)

Answered: that the dollar cost of producing X…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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**Cost Calculation for Producing Appliances**

Suppose that the dollar cost of producing $ x $ appliances is given by the function:

\[ c(x) = 1000 + 70x - 0.1x^2 \]

### Tasks:

**a.** Find the average cost per appliance of producing the first 100 appliances.

**b.** Find the marginal cost when 100 appliances are produced.

**c.** Show that the marginal cost when 100 appliances are produced is approximately the cost of producing one more appliance after the first 100 have been made, by calculating the latter cost directly.

---

The average cost per appliance of producing the first 100 appliances is $ \_\_\_ / appliance. (Round to the nearest cent as needed.)

Expert Solution

Step 1

Total cost is the cost incurred by the firm on the production of final goods and services. The total cost can be divided into two types namely, fixed cost and variable cost.

Average cost is the per unit cost.

Marginal cost is the additional cost incurred due to production of one more unit of output.

The marginal cost intersects the average cost at its minimum.

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