Final answer:
The Marginal Cost function represents the additional cost incurred when producing one additional unit of output.
We can calculate the Marginal Cost by finding the change in Total Cost and dividing it by the change in quantity.
Step-by-step explanation:
The Marginal Cost (MC) function represents the additional cost incurred when producing one additional unit of output.
To find the Marginal Cost function, we need to calculate the change in Total Cost (TC) and divide it by the change in quantity (q). In this case, the Total Cost function is given as TC = 0.1q - 20q² + 5q³.
Let's calculate the Marginal Cost at two different quantities:
At q=1200, TC = 2200. At q=1201, TC = 2200+0.1(1201)-20(1201)²+5(1201)³.
The change in TC is 0.1(1201)-20(1201)²+5(1201)³. The change in q is 1. Therefore, the Marginal Cost at q=1200 is the change in TC divided by the change in q.
Similarly, we can find the Marginal Cost at other quantities using the same method.