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Unformatted text preview: c Kendra Kilmer February 19, 2009 Section 3.7 - Marginal Analysis in Business and Economics
Example 1: Suppose the total cost (in dollars) of producing x books is given by C(x) = 0.5x2 - 12x + 100 a) Find C(15) -C(14) and interpret. b) Find C (14) and interpret. Marginal Business Functions: Approximate change in the dependent variable (cost, revenue, profit) when the independent variable (the number of items produced/sold) is changed by a single unit. Marginal Cost Function Marginal Revenue Function Marginal Profit Function Marginal Average Cost Function Marginal Average Revenue Function Marginal Average Profit Function 10 c Kendra Kilmer February 19, 2009 Example 2: The total cost (in dollars) of producing x television sets is C(x) = 10000 + 200x - 0.1x2 a) Find the exact cost of producing the 101st television set. b) Use the marginal cost to approximate the cost of producing the 101st television set. Example 3: The total profit (in dollars) of producing x ski jackets is given by P(x) = -0.2x2 + 176x - 21900 a) Find the average profit per ski jacket if 250 ski jackets are manufactured. b) Find the marginal average profit at a production level of 250 ski jackets and interpret. c) Use the results from part a) and b) to estimate the average profit per ski jackets if 251 ski jackets are produced. Section 3.7 Homework Problems: 1-17(odd) and supplemental problems 11 ...
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This note was uploaded on 03/27/2012 for the course MATH 142 taught by Professor Drost during the Fall '08 term at Texas A&M.
- Fall '08