The average cost for producing q units of product is given by
=
)At a production level of 900 units,the marginal cost is
C) 0.87.
D) 0.87e.

Question

The average cost  for producing q units of product is given by 
= 
)At a production level of 900 units,the marginal cost is
C) 0.87. 
D) 0.87e.

Quizplus · Accepted Answer

The marginal cost is the derivative of the average cost function with respect to q:

AC(q) = 800 + 0.03q + 0.000004q^2
MC(q) = d/dq (800 + 0.03q + 0.000004q^2) = 0.06q + 0.000008q

At a production level of 900 units, the marginal cost is:
MC(900) = 0.06(900) + 0.000008(900)^2 = 54 + 6.48 = 60.48

So the answer is B, 11ea83f6_634f_d0c8_b5a5_af36dc0be524_TB6578_11_TB6578_11.

The Average Cost for Producing Q Units of Product