Introduction to Calculus in Economics (continued): In the previous Problem Set question, we started looking at the cost function C (x), the cost of a firm producing z items. An important microeconomics concept is the marginal cost, defined in (non-mathematical introductory) economics as the cost of producing one additional item. If the current production level is z items with cost C (I), then the cost of computing h additionial items is C (z + h) The average cost of those h items is (C(Ith)-C(I)) As we analyze the cost of just the last item produced, this can be made into a mathematical model by taking the limit as h - 0, ie. the h derivative C (z) Use this function in the model below for the Marginal Cost function MC (I) Problem Set question: The cost, in dollars, of producing I units of a certain item is given by C (z) = 0.0413 - 51 + 250 (a) Find the marginal cost function, MC (I)= (b) Find the marginal cost when 70 units of the item are produced. The marginal cost when 70 units are produced is $ Number (c) Find the actual cost of increasing production from 70 units to 71 units The actual cost of increasing production from 70 units to 71 units is $ Number