The cost of producing x teddy bears per day at the Cuddly Companion Co. is calculated by their marketing staff to be given by the formula
C(x) = 100 + 38x − 0.08x2.
(a) Find the marginal cost function C'(x). HINT [See Example 1.]
C'(x)=
Use it to determine how fast the cost is going up at a production level of 100 teddy bears.
$______ per teddy bear
Compare this with the exact cost of producing the 101st teddy bear.
The cost is increasing at a rate of $ ____ per teddy bear. The exact cost of producing the 101st teddy bear is $____. Thus, there is a difference of $_____ .
(b) Find the average cost function
C and evaluate C(100).
C(x) =
C(100) =
$____ per teddy bear
What does the answer tell you?
The average cost of producing the first hundred teddy bears is $____ per teddy bear.
(Please fill all blanks)