Question

The marginal cost for a company to produce q items is given by MC (q )equals 0.002 q squared minus 0.8 q plus 635. The​ company's fixed costs are ​$8400. The cost to increase production from a production level of 310 items to a production level of 530 items is

Answer 1

Cost to increase production is $733.6

Step-by-step explanation:

We have given marginal cost
`MC=0.002q^2-0.8q+635`

Fixed cost = $8400

So total cost
`TC=0.002q^2-0.8q+635+8400`

Cost of 310 items

`TC=0.002* 310^2-0.8* 310+635+8400=8979.2`

Cost of 530 items

`TC=0.002* 530^2-0.8* 530+635+8400=9712.8`

So the cost increases production is $9712.8 - $8979.2 = $733.6