7)

The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula

C(x) = 100 + 41x 0.04x².

(a)

Find the marginal cost function C'(x).

C'(x) =

Use it to determine how fast the cost is going up (in $) at a production level of 100 teddy bears.

$__________ per teddy bear

Compare this with the exact cost of producing the 101^st teddy bear (in $).

The cost is increasing at a rate of $ _________ per teddy bear. The exact cost of producing the 101^st teddy bear is $__________ . Thus, there is a difference of $__________ .

(b)

Find the average cost function

C,

and evaluate C(100) (in $).

C(x)=

C(100)= $___________ per teddy bear

What does the answer tell you?

The average cost of producing the first hundred teddy bears is $_______ per teddy bear.