Question

A company has cost function c(q) = , where q is the number of widgets produced, and c is in dollars. (a) what are the units of marginal cost? units: dollars = dol, widgets = wid, days = day. rates: dollars per day = dol/day (b) what is the marginal cost of producing the 100th widget? (no units) (c) what is the marginal cost of producing the 1000th widget? (no units) (d) what are the units of average cost? (e) what is the average cost of producing 100 widgets? (no units)

Answer 1

The units of marginal cost are dollars per widget. The marginal cost of producing the 100th widget and the 1000th widget can be calculated using the cost function provided. The units of average cost are dollars per widget, and the average cost of producing 100 widgets is calculated by dividing the total cost by 100.

Step-by-step explanation:

The units of marginal cost are dollars per widget or dollars per unit. Marginal cost represents the additional cost of producing one more widget.

The marginal cost of producing the 100th widget and the 1000th widget can be calculated using the cost function provided by substituting the respective values of q into the function.

The units of average cost are dollars per widget or dollars per unit. Average cost is calculated by dividing the total cost by the quantity of output produced. The average cost of producing 100 widgets can be calculated by dividing the total cost of producing 100 widgets by 100.