Suppose that the total cost to produce 200 units of a consumer item is C(200) = $3,789 and that the marginal cost at this production level is C'(200) = 16 dollars per unit made. Use this information to estimate the total cost C(205).

Question

Suppose that the total cost to produce 200 units of a consumer item is C(200) = $3,789 and that the marginal cost at this production level is C'(200) =  16 dollars per unit made.  Use this information to estimate the total cost C(205).

Anonymous · Answer

d C/ du = 16 $/unit d C = 16 du = 16 (205- 200) = 80 C(205) = C(200) + 80 = 3789 + 80