Problema Solution

To produce 200 omelets cost $216.07, 800 omelets is $720.07.C(x)is a linear function of x, and the number of omelets produced. Evaluate the cost of producing 1700 and 1701 omelets. find the marginal cost of the 1701st omelet.

Answer provided by our tutors

C(x)is a linear function of x

y=c(x)=ax+b

we have : 216.07=200a+b

                720.07=800a+b

-> a=0.84; b=48.07

y=0.84x+ 48.07

the cost of producing 1700: y=1476.07

the cost of producing 1701: y=1476.91

the marginal cost of the 1701st omelet: (1476.07-1476.91)/(1701-1700)=0.84