Intelligent Inc. specializes in the manufacture of components for personal computers. Management an understanding of the overhead cost. The same budgeting practice will be needed in preparing the estimates of costs and revenues associated with undertaking a new project, has determined that the daily cumulative cost of producing these components (in dollars) is given by:
C(x) = 0.000lx3 - 0.08x2 + 40x + 5000
where x is the number of components produced.
(a) What is the actual cost incurred for manufacturing the 301st component?
(b) What is the marginal cost of the 200th component? What can you say about the marginal cost as a function of x (increasing or decreasing)?
(c) What is the average unit cost if you produce just 300 units?