The marginal cost of producing a product is the cost of producing one more unit. If you produce n units, then it is essentially the instantaneous rate of change of the total cost after producing n units, or the cost to produce one more item (n + 1). Given the total cost of producing x units C(x) x = 500. Include units of measure. = 10,000 + 5x + 0.01x², calculate the marginal cost at a) b) What is the total cost of making 500 units? 501 units? How do these values support your answer found in part (a)?

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter12: The Cost Of Production
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3.
The marginal cost of producing a product is the cost of producing one more unit.
If you produce n units, then it is essentially the instantaneous rate of change of the total cost after producing n
units, or the cost to produce one more item (n + 1).
a)
Given the total cost of producing x units C(x) = 10,000 + 5x + 0.01x², calculate the marginal cost at
x = 500. Include units of measure.
What is the total cost of making 500 units? 501 units? How do these values support your answer found
in part (a)?
b)
Transcribed Image Text:3. The marginal cost of producing a product is the cost of producing one more unit. If you produce n units, then it is essentially the instantaneous rate of change of the total cost after producing n units, or the cost to produce one more item (n + 1). a) Given the total cost of producing x units C(x) = 10,000 + 5x + 0.01x², calculate the marginal cost at x = 500. Include units of measure. What is the total cost of making 500 units? 501 units? How do these values support your answer found in part (a)? b)
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