Question

Assume that the Marginal Cost (MC) function of a firm is given by the function: e- (1/x) +3x2+1000 4. Find the Total Cost Function

Answer 1

We get the marginal cost from total cost by differentiation of the total cost function.

So, we can get the total cost function from the marginal cost by integrating the marginal cost function.

So, the result will be

Integration of e^x = e^x

Integration of -(1/x) = -ln(|x|)

Integration of 3x² = x³

Integration of 1000 = 1000x

And there will also be a term for constant (C) in the equation

So the total cost equation becomes TC = e^x - ln(|x|) + x³ + 1000x + C