Problem

Marginal Cost Analysis A company manufactures and sells fishing rods. The company has a fi...

Marginal Cost Analysis A company manufactures and sells fishing rods. The company has a fixed cost of $1500 per day and a total cost of $2200 per day when the production is set at 100 rods per day. Assume that the total cost C(x) is linearly related to the daily production level x.

(a) Express the total cost as a function of the daily production level.


(b) What is the marginal cost at production level x = 100?


(c) What is the additional cost of raising the daily production level from 100 to 101 rods? Answer this question in two different ways: (1) by using the marginal cost and (2) by computing C(101) C(100).

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