Chapter 13.3, Problem 118E

(a)

To determine

To calculate: The marginal Cost, $\frac{\partial C}{\partial x},\frac{\partial C}{\partial y}$ of freestanding wood burning stove and fireplace-insert stove when the cost function is $C=32\sqrt{xy}+175x+205y+1050$ where $x=80$ and $y=20$.

(b)

To determine

The kind of model in which the cost increases at a higher rate when there is an additional production and also determine how this kind of model can be deduced from the cost model $C=32\sqrt{xy}+175x+205y+1050$.