Chap3_Economics

Chap3_Economics - ECONOMICS Example 8 Suppose C(x) is the...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS Suppose C ( x ) is the total cost that a company incurs in producing x units of a certain commodity. The function C is called a cost function. Example 8
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
If the number of items produced is increased from x 1 to x 2 , then the additional cost is C = C ( x 2 ) - C ( x 1 ) and the average rate of change of the cost is: 2 1 1 1 2 1 ( ) ( ) ( ) ( ) C x C x C x x C x C x x x x - +Δ - Δ = = Δ - Δ AVERAGE RATE Example 8
Background image of page 2
The limit of this quantity as x 0, that is, the instantaneous rate of change of cost with respect to the number of items produced, is called the marginal cost by economists: 0 marginal cost = lim x C dC x dx Δ → Δ = Δ MARGINAL COST Example 8
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
As x often takes on only integer values, it may not make literal sense to let x approach 0. s However, we can always replace C ( x ) by a smooth approximating function—as in Example 6. ECONOMICS Example 8
Background image of page 4
Taking x = 1 and n large (so that x is small compared to n ), we have: C ’( n ) C ( n + 1) –
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 11

Chap3_Economics - ECONOMICS Example 8 Suppose C(x) is the...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online