Question

The weekly total cost of baking pies at Tasty Tortes is given by TC = 0.01 Q 1.5. Tasty’s marginal cost of producing 10,000 pies a week is:

Answer 1

Answer: $1.50

Explanation:

TC = 0.01Q⁰.⁵

You get marginal cost when you differentiate the total cost.

MC = dTC / dQ

= 1.5 * 0.01 * Q¹.⁵ ⁻ ¹

= 0.015 * Q⁰.⁵

When Q is 10,000, the marginal cost is:

= 0.015 * 10,000⁰.⁵

= $1.50