If the average cost function of producing and marketing x units of an item is $AC=2 x-11+\frac{50}{x}$, then the marginal cost function is:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → $4 x-11$
$AC = 2x - 11 + \frac{50}{x}$
$C(x) = x \cdot AC = x\left(2x - 11 + \frac{50}{x}\right)$
$= 2x^2 - 11x + 50$
$\text{Marginal cost} = C'(x) = 4x - 11$
$\text{Marginal cost} = 4x - 11$