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The total cost c(x)c(x) associated with the production of xx units of an item is given by c(x)=0.001x3+0.06x2+20x+500c(x) = 0.001x^3 + 0.06x^2 + 20x + 500. The marginal cost when 10 units are produced is:

Solution

✅ Correct Option: 1

Marginal cost is the additional cost of producing one more unit, represented by the derivative of the cost function c(x)c(x).

Given cost function:

c(x)=0.001x3+0.06x2+20x+500c(x) = 0.001x^3 + 0.06x^2 + 20x + 500

Taking the derivative with respect to xx:

c′(x)=ddx[0.001x3+0.06x2+20x+500]c'(x) = \frac{d}{dx}[0.001x^3 + 0.06x^2 + 20x + 500]

c′(x)=0.003x2+0.12x+20c'(x) = 0.003x^2 + 0.12x + 20


To find the marginal cost when 10 units are produced, substitute x=10x = 10:

c′(10)=0.003(10)2+0.12(10)+20c'(10) = 0.003(10)^2 + 0.12(10) + 20

c′(10)=0.003(100)+1.2+20c'(10) = 0.003(100) + 1.2 + 20

c′(10)=0.3+1.2+20c'(10) = 0.3 + 1.2 + 20

c′(10)=21.5c'(10) = 21.5


The calculated marginal cost is 21.521.5.

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