The variable cost for the production of a calculator is $13.75 and the initial investment is $210,000.Use differentials to approximate the change in the cost C for a one-unit increase in production when ,where x is the number of units produced.
A) 687,500.00 dollars
B) 14.75 dollars
C) 688,500.00 dollars
D) 13.75 dollars
E) 23.75 dollars

Question

The variable cost for the production of a calculator is $13.75 and the initial investment is $210,000.Use differentials to approximate the change in the cost C for a one-unit increase in production when  ,where x is the number of units produced. ​
A) ​687,500.00 dollars 
B) ​14.75 dollars 
C) ​688,500.00 dollars 
D) ​13.75 dollars 
E) ​23.75 dollars

Quizplus · Accepted Answer

Using the formula for differentials:

dC = C'(x) * dx

We know that the variable cost for production is $13.75, so C'(x) = 13.75.

We also know that x = 11, so dx = 1.

Plugging this into the formula for differentials gives:

dC = 13.75 * 1
dC = 13.75

Therefore, the cost will increase by $13.75 for a one-unit increase in production. The best choice is D.

The Variable Cost for the Production of a Calculator Is