Problem

If the cost function for a commodity is
\[
C(x)=\frac{1}{90} x^{3}+2 x^{2}+2 x+16 \text { dollars }
\]
find the marginal cost \( \overline{M C} \) at \( x=9 \) units. (Round your answer to two decimal places.) \( \overline{M C}=\$ 407 / 10 \)
Tell what the marginal cost predicts about the cost of producing 1 additional unit.
The cost of producing 1 additional unit is \( \$-139 / 30 \).
Tell what the marginal cost predicts about the cost of producing 2 additional units.
The cost of producing 2 additional units is \( \$ 1501 / 30 \).
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Answer

Calculate the cost of producing 1 additional unit and 2 additional units: \(\Delta C_{1} = MC(9)-MC(10), \Delta C_{2} = MC(9)-MC(11)

Steps

Step 1 :Differentiate the cost function: \( MC(x) = \frac{dC}{dx} = \frac{1}{30} x^{2} + 4x + 2\)

Step 2 :Find the marginal cost at x=9: \( MC(9) = \frac{1}{30}(9)^{2} + 4(9) + 2 \)

Step 3 :Calculate the cost of producing 1 additional unit and 2 additional units: \(\Delta C_{1} = MC(9)-MC(10), \Delta C_{2} = MC(9)-MC(11)

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