Section 26 B
Section 26 B
x units of commodity.
IFnd (a) the average cost and (b) the marginal cost given that for
(i) C(r)=r+3r-16x +2:
0C(a)= ;r+r
3
-&r +5; 3
(i) The average cost function for a product is given by AC = 0.0002r - 0.05r -
8000
where xis the output. Findthe marginal cost function. Whattisthe
marg1nal
cost when 100 units are produced? Interpret your resut.
6. () The total cost function for a production and marketing activity is given hy
3
Cx) = -x-7x+ 27. Find the level of output (number of units produced) for which
4
MC = AC.
(ISC 2019)
(ii) IfC(x) -0.05x -0.2x-5, find the level of output x for which the average cost function
AC becones equal to the marginal cost.
7. The total cost function is given by C=x+ 2r- 3.5x*, find the marginal average cost
function (MAC). Also, find the points where the MC curve cuts the x-axis and s-axis.
d
8. Verify that (AC) = -(MC - AC), given that
dx
() C=3- 2x +5x (ii) C= a+ bx t cr (ISC 2012) (i) Ca)=a+hiad
9. The average cost of producing x units of acommodity is given by the equatioa
5000
AC = -30+ Find the marginal cost (MC) function and verifv that
200 50
dAC MC - AC
dx
10. If C = 2x +6 is the total cost of production ofx units of a certain product, show
that the marginal cost falls continuously as the output x increases.
of Calculus in Commerce and Economics Ch 26-19
Application
forthe cost functions C(x) = ax *+b +d, a, b, c, d>0. b> c that the average
Verify X+c
|1.
fall continuously
marginal cost curves fall with increasing output.
and
average cost function50 associated with producing and marketingx units of an item is
12, The
AC=2 -11+ Find the total cost function and marginal cost function. Also,
givenby.
rangeofithe output for which AC is (JSC 2018)
findthe increasing.
cost function for x units is given by C(*) = J6x+ 5 +2500. Show that the
13.
Thetotal
as the output x increases.
marginal cost decreases
ANSWERS
à MC=t2r-8, AC= ;x+r-8+ 2 (ii) MC=x*+6x-16, AC= +3r- 16+ 2