Question

The marginal cost for a company to produce q items is given by MC (q )equals 0.002 q squared minus 0.8 q plus 635. The​ company's fixed costs are ​$8400. The cost to increase production from a production level of 310 items to a production level of 530 items is

Answer 1

Answer:

Cost to increase production is $733.6

Explanation:

We have given marginal cost $MC=0.002q^2-0.8q+635$

Fixed cost = $8400

So total cost $TC=0.002q^2-0.8q+635+8400$

Cost of 310 items

$TC=0.002\times 310^2-0.8\times 310+635+8400=8979.2$

Cost of 530 items

$TC=0.002\times 530^2-0.8\times 530+635+8400=9712.8$

So the cost increases production is  $9712.8 - $8979.2 = $733.6