Question

1.      Given the following cost function: C(x) = 3x+2/x+4 ,

a)     Find the MC function                                                                                                        

b) What is the marginal cost when  x=20

Answer 1

a) The MC function is:

$MC = C'(x) = 3 - 2/x^2.$

b) If x = 20, then $MC = 3 - 2/400 = 2.995.$