Suppose a Company Has Estimated That the Marginal Cost of Manufacturing

question 1

Multiple Choice

Suppose a company has estimated that the marginal cost of manufacturing x items is $c ^ { \prime } ( x ) = 5 + 0.02 x$ (measured in dollars per unit) with a fixed start-up cost of c(0) = 10,000. Find the cost of producing the first 500 items.

• A)$15,000
• B)$5,000
• C)$10,000
• D)$17,500
• E)$25,000
• F)$6000
• G)$20,000
• H)$60,000

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Definitions:

Serial Bonds

Bonds that are issued at the same time but mature at different intervals, allowing for the gradual repayment of the debt.

Maturity Dates

The specified dates on which the principal amount of a debt instrument, such as a bond or loan, is to be repaid to the lender.

Interest-bearing Notes

A debt instrument that pays interest to the lender, including a specified interest rate and maturity date.

Long-term

Describes assets, liabilities, or financial investments that are expected to be held or have a life span greater than one year.