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Cost Functions and Marginal Analysis

Cost Functions and Marginal Analysis

Assessment

Interactive Video

Mathematics, Business

9th - 12th Grade

Practice Problem

Hard

Created by

Mia Campbell

FREE Resource

The video tutorial explains the cost function C(Q) = 20.5Q + 84,000, used to calculate the total cost of producing Q units. It demonstrates how to find the total cost for 800 units and the marginal cost of the 801st item. The tutorial highlights the linear nature of the cost function, where the cost increases by $20.50 for each additional unit. It also discusses using derivatives to approximate marginal cost, emphasizing that the derivative of the cost function provides a consistent marginal cost value.

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10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the formula for the total cost function given in the video?

C(Q) = 25Q + 80,000

C(Q) = 30Q + 70,000

C(Q) = 20.5Q + 84,000

C(Q) = 15Q + 90,000

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How much does it cost to produce 800 units according to the cost function?

$90,000

$100,400

$110,000

$120,500

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the cost of producing the 801st item?

$25.00

$15.00

$20.50

$30.50

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the term used to describe the cost of producing one additional unit?

Marginal Cost

Variable Cost

Fixed Cost

Average Cost

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the slope of the linear cost function?

30

25

20.5

15

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the cost change as Q increases by 1 unit?

Increases by $25.00

Increases by $20.50

Increases by $15.00

Increases by $30.50

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the derivative of the cost function C(Q) = 20.5Q + 84,000?

15

20.5

25

30

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