Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Question:

The marginal cost of production of x units of a commodity is $56 +\frac{3}{2}x$. It is known that fixed costs are Rs.115. Then the total cost of producing 50 units is:-

Options:

Rs. 2800

Rs. 1875

Rs. 4790

Rs. 3383.75

Correct Answer:

Rs. 4790

Explanation:

The correct answer is Option (3) → Rs. 4790

Given

Marginal cost: $MC = 56 + \frac{3}{2}x$

Fixed cost: $FC = 115$

Total cost: $TC = FC + \int MC \, dx$

$\int (56 + \frac{3}{2}x) dx = 56x + \frac{3}{4}x^2$

Total cost for 50 units:

$TC = 115 + 56\cdot 50 + \frac{3}{4}\cdot 50^2$

$TC = 115 + 2800 + \frac{3}{4}\cdot 2500 = 115 + 2800 + 1875 = 4790$