The average cost function associated with producing and marketing x units of an item is given by $AC=2x-11+\frac{50}{x}$ then the marginal cost of 10 items will be :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 29
The average cost of a function is,
$AC=2x-11+\frac{50}{x}$
∴ Total cost, $C(x)=AC.x$
$=x(2x-11+\frac{50}{x})$
$=2x^2-11x+50$
$MC=\frac{d}{dx}(2x^2-11x+50)=4x-11$
$MC(10)=4(10)-11=29$