V. Suppose function C with image formula C(x)=0.0005-x3³+0.08 x² +114 x+50000 is a good fitting model cost function for the production of a certain item. A. For what number of items produced is the tangent line slope estimate of the cost of producing the very next item, or the marginal cost, at a minimum?
V. Suppose function C with image formula C(x)=0.0005-x3³+0.08 x² +114 x+50000 is a good fitting model cost function for the production of a certain item. A. For what number of items produced is the tangent line slope estimate of the cost of producing the very next item, or the marginal cost, at a minimum?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Answer all questions otherwise skip.
Transcribed Image Text:V. Suppose function C with image formula
C(x) = 0.0005 x+0.08 x2 +114 x+50000
is a good fitting model cost function for the production of a certain item.
A. For what number of items produced is the tangent line slope estimate of the
cost of producing the very next item, or the marginal cost, at a minimum?
B. Suppose function D with image formula D(x)= 0.45 ·x + 500 is a good fitting
model demand function.
1. Give an image formula for function R, the total revenue function.
2. Use your answer to "1" right above and your calculator to compute,
accurate to the nearest cent, the revenue that would come from the sale of
the first 250 items produced.
3. Somehow determine the number of items to produce so that the total
revenue will be at a maximum.
4. Compute the profit (or loss--say which) that would arise from the sale
of the first 50 items produced.
5. Compute the profit (or loss--say which) that would arise from the sale
of the first 400 items produced.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps with 3 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
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
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
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education