section38_material

section38_material - MATH110BUSINESSCALCULUS

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MATH 110 BUSINESS CALCULUS CHAPTER 3 INTRODUCTION TO THE DERIVATIVE Section 3.8 The First Application: Marginal Analysis C(x) is a Cost Function R(x) is a Revenue Function P(x) is a Profit Function P(x) = R(x) – C(x) Marginal Cost, Revenue, and Profit functions C’(x) is the Marginal Cost Function R’(x) is the Marginal Revenue Function P’(x) is the Marginal Profit Function P’(x) = R’(x) – C’(x) Interpretation: (1 ) ( ) () 1 Cx +− A Marginal Cost is an approximate cost of one more item. The analogous interpretation applies to a Marginal Revenue and a Marginal Profit. So, a Marginal Revenue is an approximate revenue from the sale of one more item.
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Average Cost, Revenue, and Profit functions () Cx x = is the Average Cost Rx x = is the Average Revenue P x Px x = is the Average Profit Example: Marginal cost and Average Cost 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 2 ( ) 100 40 0.001 x x =+ a. Find the marginal cost function and use it to estimate
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This note was uploaded on 10/19/2011 for the course MATH 110 taught by Professor Staff during the Spring '11 term at S.F. State.

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section38_material - MATH110BUSINESSCALCULUS

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