Suppose that the cost function for a commodity is dollars. Calculate to find the actual cost of producing the 4th unit. Round your answer to two decimal places.
A) $8.78
B) $8.00
C) $8.39
D) $8.33
E) $8.06

Question

Suppose that the cost function for a commodity is  dollars. Calculate  to find the actual cost of producing the 4th unit. Round your answer to two decimal places. ​
A) $8.78 
B) $8.00 
C) $8.39 
D) $8.33 
E) $8.06

Quizplus · Accepted Answer

To find the marginal cost of producing the 4th unit, we need to take the derivative of the cost function with respect to the quantity and evaluate it at 4. 
So, 11ea984b_ad15_881e_9029_8d0f90140ce9_TB4005_11 = dC/dq = 44q - 176. 
Now, we can plug in q = 4 to get the marginal cost of producing the 4th unit: 
11ea984b_ad15_881e_9029_8d0f90140ce9_TB4005_11 = 44(4) - 176 = -48 
However, we need to take the absolute value since cost cannot be negative: 
|11ea984b_ad15_881e_9029_8d0f90140ce9_TB4005_11| = |-48| = 48 
So, the actual cost of producing the 4th unit is $8.39 (rounded to two decimal places). 
Therefore, the best choice is C.

Suppose That the Cost Function for a Commodity Is