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What is the marginal cost

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Reference no: EM132154186

Consider the cost function C(x) = 7x2 +16x+25. (In thousands of dollars.)

(a) What is the marginal cost (MC) at production level x = 4?

(b) Use the MC at x = 4 to estimate the cost of producing 4.5 units.

(c) Let the revenue function be given by R(x) = -x2 + 49x + 60. What is the break-even point?

(d) Compute and compare the marginal revenue (MR) and MC at the break-even point. Should the company produce production beyond the break-even point? Why or why not?

Reference no: EM132154186

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