Suppose That the Total Cost $C$ (In Thousands of Dollars) to Produce

question 24

Essay

Suppose that the total cost $C$ (in thousands of dollars) to produce $x$ units (in millions) of a particular product is given by the function $C ( x ) = \frac { x ^ { 2 } } { 10 } + 100$ .
(a) Find
.
(b) Find
. What does your answer represent?

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The increase in total cost that arises from producing one additional unit of a good or service.

Output

The amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Costs

Costs that vary directly with the level of output, such as raw materials and direct labor expenses.