Manufacturing—Hard Drive Production: The Memory Master Company makes portable hard drives for laptop computers, and its managers have determined that the cost of producing its 3-terabyte hard drive can be modeled by
C(x) = 10,000 + 200x − 0.2x2 0 ≤ x ≤ 650
where x represents the number of hard drives produced each week and C(x) represents the manufacturing cost in dollars.
(a) Determine the marginal cost function MC(x) and evaluate MC(500).
(b) If the Memory Master Company sells 500 hard drives weekly to a computer chain store for $120 each, should production be increased? Explain your answer.
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