The total cost, C, (in thousands of dollars) to make reading glasses is a function of the number of pairs of glasses made u (in thousands 4 ≤ u≤ 40) and is given by C(u) = 0.02 u²+2.4. u + 14.06. A. Find the marginal cost at the production level of 7 thousand and choose the correct units 2.68 $/pair (nearest 0.01) B. Which one is the best business interpretation of the marginal cost above The approximate cost to produce the 7,001 pair ✓ C. What is the average cost at the same production level? 4.55 (nearest 0.01) D. At this production level if another pair of glasses are made the average cost will Decrease E. At what total production level will average cost be minimized? (nearest 1000 units)
The total cost, C, (in thousands of dollars) to make reading glasses is a function of the number of pairs of glasses made u (in thousands 4 ≤ u≤ 40) and is given by C(u) = 0.02 u²+2.4. u + 14.06. A. Find the marginal cost at the production level of 7 thousand and choose the correct units 2.68 $/pair (nearest 0.01) B. Which one is the best business interpretation of the marginal cost above The approximate cost to produce the 7,001 pair ✓ C. What is the average cost at the same production level? 4.55 (nearest 0.01) D. At this production level if another pair of glasses are made the average cost will Decrease E. At what total production level will average cost be minimized? (nearest 1000 units)
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 3MC
Related questions
Question
Plz explain
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc