The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formulaC(x) = 100 + 37x - 0.07x2.(a) Find the marginal cost function C'(x).C'(x) =(b) How fast is the cost going up at a production level of 100 teddy bears?When they produce 100 teddy bears, the production costs are increasing at a rate ofx dollars per teddy bearIn other words, the cost to produce the 101stteddy bear is approximatelydollars(c) Find the average cost function C, and evaluate C(100).C(x) =C(100) =So when they produce 100 teddy bears, the average cost per teddy bear isx dollars.(d) Fill in the blanks: Since the marginal cost is less thanthe average cost per unit, increasing production from 100 teddy bears will cause the average cost per unit to decrease.

The answer to the question are as follows :

"he cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 37x - 0.07x². a) Find the marginal cost function C'(x). C'(x) = || b) How fast is the cost going up at a production level of 100 teddy bears? When they produce 100 teddy bears, the production costs are increasing at a rate of [ n other words, the cost to produce the 101st |× dollars per teddy bear ]× dollars v teddy bear is approximately | c) Find the average cost function 7, and evaluate č(100). C(x) = C(100) = |x so when they produce 100 teddy bears, the average cost per teddy bear is x dollars.

"he cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula C(x) = 100 + 37x - 0.07x². a) Find the marginal cost function C'(x). C'(x) = || b) How fast is the cost going up at a production level of 100 teddy bears? When they produce 100 teddy bears, the production costs are increasing at a rate of [ n other words, the cost to produce the 101st |× dollars per teddy bear ]× dollars v teddy bear is approximately | c) Find the average cost function 7, and evaluate č(100). C(x) = C(100) = |x so when they produce 100 teddy bears, the average cost per teddy bear is x dollars.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.4P

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