Question

The cost, in thousands of dollars, of airing x television commercials during a sports event is given by C(x) = 150 + 2,400x -0.01x? (a) Find the marginal cost function CX). HINT [See Example 1.) CTX) Use it to determine how fast the cost is increasing when x = 4 thousand dollars Compare this with the exact cost of airing the fifth commercial The cost is going up at the rate of 5 per television commercial, The exact cost of alring the fifth commercialis Thus, there is a difference of (b) Find the average cost function C, and evaluate C[4). HINT (See Example 4.1 C14) - thousand dollars What does the answer tell you? The average cost of airing the first four commercials is $ per commercial,

Answer 1

Auswer (*) = 150 + 2,4 0 - 0:x4 G @ marginal cost, M(x) = ? marginal cost is the cost of one aditional product/component M (X) = CER+1- Call 3150 + 2400 (x+1) -0.01(n+1)? ...... -P150 + 240081 -0.014?} MOL) = 2400 -0.01 -0.02% * M(2) = 2399.gg-00020 thousands of dollars emis © how fast cost is increasing per product at a=4 2 = marginal cost at a=4 = M(4) = 2399.99-000244 - 2399.91 } cost is dollars increasing at the rate 2399.91 thousands per television. © exact cost of airing 5th commercial = M15) = 2399,99 -0.02X 5 = 2399189 the cost was going up = M(4) = 2399.91 difference = 2399.91-2399.89 = 0.02 thousan dollars

6 Average cost function è che = total cost no. of units can - - 150 + 240020.01 2 Ĉ (4) = 150 + 2400 x 4 -0.01% 42 . LE 24.37.46 the average cost of is 2437.46 dollars airing a television thousand dollars per telivision
the answer tells us that on airing of 4 telivisions, the average cost of airing 1 telivision is 2437.46 thousand dollars.