Question
5. Suppose the monthly cost, in dollars, of producing x day packs is and currently 30 day packs are produced monthly. C(x)= 0.001x 3 +
5. Suppose the monthly cost, in dollars, of producing x day packs is and currently 30 day packs are produced monthly.
C(x)= 0.001x3+ 0.07x2+ 19x + 550
a: What is the current monthly cost?
b: What would be the additional cost of increasing to 31 day packs monthly.
c: What is the marginal cost when x= 30?
d: Describe what quantity in part (c) represents.
6: High Wire Electronics determines the following demand function for a new game:
where q is the number of games sold per day when the price is x dollars per game.
q= D(x)=200x3
a: Find the elasticity.
b: Find the elasticity when x= 3.
c: At x=3 will a small increase in price cause total revenue to increase or decrease?
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