The total cost C(x) of a firm is $C(x) = 0.0005x^3 - 0.7x^2 - 30x + 3000$ where x is the output. Determine the marginal cost (MC).
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → $MC=0.0015x^2−1.4x−30$
Marginal cost (MC) = $\frac{d}{dx}(C(x)) =\frac{d}{dx}(0.0005x^3 -0.7x^2-30x + 3000)$
$= 0.0015x^2 - 1.4x-30$.