use marginal cost to estimate the difference in cost between producing 25 and 27 chairs per month.?

Question

here is the equation: C(x)= 0.001x^3 + 0.07x^2 + 19x + 700

the second part is to predict c(27) using the answer from the first part.


i dont know how to do it, please help.

Answer 1

The marginal cost is the cost of producing the Nth unit. One way of computing it is:

C(N+1) - C(N)

More generally, when units aren't just integers (1.5 tons, etc.) you have

M(x) = (C(x+h) - C(x))/h as h -> 0

This should look familiar as it is just the derivative of C(x)

Given C'(a):

C(a+x) is approximately = C(a) + C'(a)x

so C(a+x) - C(a) = xC'(a)

Answer 2

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