Suppose That the Total Cost (In Dollars) for a Product

question 135

Multiple Choice

Suppose that the total cost (in dollars) for a product is given by , where x is the number of units produced. Find the marginal cost when 500 units are produced, and interpret your result. Round your answer to the nearest cent. ​

• A) $0.80. It will cost approximately $0.80 to make the 501st unit.
• B) $0.31. It will cost approximately $0.31 to make the 501st unit.
• C) $0.40. It will cost approximately $0.40 to make the 501st unit.
• D) $380.95. It will cost approximately $380.95 to make the 501st unit.
• E) $1.00. It will cost approximately $1.00 to make the 501st unit.

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Definitions:

Premium Rate

The price of an insurance premium per unit of coverage, often expressed in terms of monthly or annual cost.

Premium Rate

The price of an insurance policy, typically quoted as a cost per hundred or thousand dollars of coverage.

Annual Premium

Annual Premium refers to the amount paid yearly for an insurance policy to keep it active and provide coverage.

Short-rate Refund

A refund of a portion of a premium on an insurance policy, calculated using a method that is less than pro-rata, often involving a penalty for early cancellation.