2007-06-22 12:22:37 · 2 answers · asked by Anonymous in Science & Mathematics ➔ Mathematics
The marginal cost function is obtained by talking the derivative.
1.5x^2 - 4x + 10
2007-06-22 12:36:09 · answer #1 · answered by robri 1 · 0⤊ 0⤋
robi is correct, but now that you have the derivative, do you understand what it means? Do you understand what "margin" means?
delC/delX = 1.5 X^2 - 4 X + 10 represents the slope of the C(X) equation you gave. Margin really is a slope in graphical terms. And like a slope, margin means a change in value for a dependent variable (e.g., C) given a change in value for the independent variable (e.g., X) the dependent variable depends on for its value.
For example, what's the marginal cost when demand is X = 2 units? Just plug that X = 2 into 1.5 X^2 - 4 X + 10 = 1.5(4) - 4(2) + 10 = 6 - 8 + 10 = $8 per additional unit demanded. That is, the cost of making the unit continues to go up as demand for that unit rises. This is called diseconomies of scale and it's something that should be avoided in business.
2007-06-22 20:17:38 · answer #2 · answered by oldprof 7 · 0⤊ 0⤋