Economics Suppose pq = 100 is the demand equation for a manufacturer’s product. Let c be the total cost, and assume that the marginal cost is 0.01 when q = 200. Use the chain rule to find dc/dp when q = 200.
Business A manufacturer has determined that, for his product, the daily average cost (in hundreds of dollars) is given by
(a) As daily production increases, the average cost approaches a constant dollar amount. What is this amount?
(b) Determine the manufacturer’s marginal cost when 17 units are produced per day.
(c) The manufacturer determines that if production (and sales) were increased to 18 units per day, revenue would increase by $275. Should this move be made? Why?
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