In Saudi Arabia, the cost of drilling an oil well depends on the costs fixed costs and
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In Saudi Arabia, the cost of drilling an oil well depends on the costs fixed costs and marginal cost (increase in cost for each meter of borehole additional). Suppose the fixed costs are 900,000 riyals and THE marginal cost of drilling (in riyals per meter) is given by CM(x)= 3900 + 20x where x is the depth of the well in meters.
a) What will be the cost of drilling a well 300 meters deep in Saudi Arabia
b)What will be the depth of a well if its cost of 4,302,000 riyals?
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