Question

A​ company's total​ cost, in millions of​ dollars, is given by Upper C left parenthesis t right parenthesis equals 240 minus 30 e Superscript negative t where tequalstime in years. Find the marginal cost when t equals 2. A. 2.99 million dollars per year B. 4.06 million dollars per year C. 32.48 million dollars per year D. 8.12 million dollars per year

Answer 1

Answer: Option (B). 4.06 million dollars per year.

Explanation: The total cost function is given as,

----------------------------------------------- (1)

C(t) 240 30e

The marginal (M.C) is defined as,

M.C Ct

So,

M.C 240 30e dr

M.C 0 30 (-1)e

M.C 30e t

For t=2

million dollars per year.

30 x 0.1353353 4.0600585 M.C 30e

SO, Rounding to two decimal places,

million dollars per year.

MC4.06

Hence, Option (B). 4.06 million dollars per year is the correct answer.