Answer:
(a)$4954
(b)$10
(c)The company should not produce the 101st item.
Step-by-step explanation:
(a)
(b)If C'(50) = 27 and R'(50) =37
- Cost will increase by $27
- Revenue will increase by $37
Therefore, the profit earned on the 51st item
=37-27
=$10
(c)If C'(100) = 41 and R'(100) =37
- Cost will increase by $41
- Revenue will increase by $37
Therefore, the profit earned on the 101st item
Profit
=37-41
=-$4
The company should not produce the 101st item. It would lose $4 if it does.