Question
Consider the marginal cost function
a. Find the additional cost incurred in dollars when production is increased from 100 units to 150 units.
b. Find the additional cost incurred in dollars when production is increased from 400 units to 450 units.
a. Find the additional cost incurred in dollars when production is increased from 100 units to 150 units.
b. Find the additional cost incurred in dollars when production is increased from 400 units to 450 units.
Ask by Powers Patel. in the United States
Jan 23,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
Additional Costs:
a. Increasing production from 100 to 150 units costs $77,083.33.
b. Increasing production from 400 to 450 units costs $174,583.33.
Solution

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Beyond the Answer
To solve the problems, we need to find the total cost function from the marginal cost function and then evaluate it over the given intervals.
a. First, we need to integrate the marginal cost function
:
Now we will evaluate the total cost at
and
:
Calculating
:
Now calculate
:
Calculating
:
Now to find the additional cost incurred when producing from 100 to 150 units:
b. Now, we will find the additional cost incurred when production is increased from 400 units to 450 units.
We calculate
and
:
Calculating
:
Calculating
:
Now calculating
:
Calculating
:
Now to find the additional cost incurred when producing from 400 to 450 units:
In summary, the additional cost incurred when increasing production from 100 to 150 units is approximately
dollars, and when increasing from 400 to 450 units it is approximately
dollars.