Answer to Question #266204 in Microeconomics for farouk

Question

Suppose the cost function is C(Q) = 50 + Q − 10Q² + 2Q³. What is the marginal cost of producing 10 units?

a. $560

b. $1,010

c. $401

d. $1,060

Answer 1

Marginal cost is given by;

MC=$\frac{\delta C}{ \delta Q}=1-20Q+6Q^2$

MC of producing 10 units will be;

$1-20(10)+6(102)=\$401$

C is the correct answer