Answer: (a) $197,500
(b) $ 189,500
Explanation:
Given : The marginal cost function : 
To find the cost function, we need to integrate the above function with respect to x.
Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-
![\int^{150}_{100}\ C'(x)\ dx\\\\=\int^{150}_{100} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{150}_{100}\\\\=[4000(150)-\dfrac{0.4(150)^2}{2}-4000(100)+\dfrac{0.4(100)^2}{2}]\\\\=[600000-4500-400000+2000]\\\\=197500](https://tex.z-dn.net/?f=%5Cint%5E%7B150%7D_%7B100%7D%5C%20C%27%28x%29%5C%20dx%5C%5C%5C%5C%3D%5Cint%5E%7B150%7D_%7B100%7D%20%284000-0.4x%29%5C%20dx%5C%5C%5C%5C%3D%5B4000x-%5Cdfrac%7B0.4x%5E2%7D%7B2%7D%5D%5E%7B150%7D_%7B100%7D%5C%5C%5C%5C%3D%5B4000%28150%29-%5Cdfrac%7B0.4%28150%29%5E2%7D%7B2%7D-4000%28100%29%2B%5Cdfrac%7B0.4%28100%29%5E2%7D%7B2%7D%5D%5C%5C%5C%5C%3D%5B600000-4500-400000%2B2000%5D%5C%5C%5C%5C%3D197500)
Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500
Similarly, the additional cost incurred in dollars when production is increased from 500 units to 550 units :-
![\int^{550}_{500}\ C'(x)\ dx\\\\=\int^{550}_{500} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{550}_{500}\\\\=[4000(550)-\dfrac{0.4(550)^2}{2}-4000(500)+\dfrac{0.4(500)^2}{2}]\\\\=[2200000-60500-2000000+50000]\\\\=189,500](https://tex.z-dn.net/?f=%5Cint%5E%7B550%7D_%7B500%7D%5C%20C%27%28x%29%5C%20dx%5C%5C%5C%5C%3D%5Cint%5E%7B550%7D_%7B500%7D%20%284000-0.4x%29%5C%20dx%5C%5C%5C%5C%3D%5B4000x-%5Cdfrac%7B0.4x%5E2%7D%7B2%7D%5D%5E%7B550%7D_%7B500%7D%5C%5C%5C%5C%3D%5B4000%28550%29-%5Cdfrac%7B0.4%28550%29%5E2%7D%7B2%7D-4000%28500%29%2B%5Cdfrac%7B0.4%28500%29%5E2%7D%7B2%7D%5D%5C%5C%5C%5C%3D%5B2200000-60500-2000000%2B50000%5D%5C%5C%5C%5C%3D189%2C500)
Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500
Answer:
the gross domestic product is $9,700
Explanation:
The computation of the gross domestic product is shown below
= Consumption spending + government spending + gross investment + exports - imports
= $6,000 + $1,200 + $1,500 + $2,000 - $1,000
= $9,700
Hence, the gross domestic product is $9,700
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
The net present value (NPV) of this investment is C) $10,048
Explanation:
Net present value (NPV) is the value of the future cash flows over the entire life of an investment discounted to the present.
The firm invests $95,000 today that will yield $109,250 in one year. The interest rates of the investment are 4%. The net present value (NPV) of this investment:
NPV = $109,250/(1+4%) - $95,000 = $10,048
Answer:
$120,000
Explanation:
Data provided in the question
Purchase value of an equipment = $120,000
Trade in allowance = $95,000
Paid cash = $25,000
Cost of an old equipment = $110,000
Accumulated depreciation = $33,000
So by considering the above situation, the recorded value of the equipment is $120,000 as the cash is paid for $25,000 and the trade in allowance is $95,000
So it would be equal to the purchase value i.e $120,000
