Question

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The cost of producing teddy bears per day at the Cuddly Companion Co. is calculated by the company's marketing staff to be given by the formula C (2) = 100 + 40.2 -0.00122 Find the marginal cost function, and use it to estimate how fast the cost is going up at a production level of 100 teddy bears. When you produce 100 teddy bears, the cost is increasing at a rate of $ per teddy bear. Find the average cost function, and evaluate (100). What does the answer tell you? When you produce 100 teddy bears, the average cost is $ per teddy bear

Answer 1

cost of producing teddy bears per day is ccx) = 100 + 402 -0.00122 The marginal_cast is c'ex). -C62_)_40_20:00 2x When the level.cl_teddybear.1.100.^__ . Then the - c'cloo) = 40 - 0.0027100 = 39.8. When you produce 100 teddy bears the cost increasing at a rate of $ 139:8) pes_teddy bears Now average cost furietron. Ĉ cx) is - Ĉca) 3. Cca); 100+402 -0.001%? x 2. Tix) = 100 + 40 = 0.001% z ' ' when 2100 ccx) = 100 +40 - 0.001x100 e 40.9 when you produce 100 teddy bears the average cost is $140.9 per teddy bear.