Exercise 7.
Let \(\cost(q)=5000+23 q\text{.}\)
Solution.
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Recall that \(\Mcost(q+1)=\cost(q+1)-\cost(q)\text{.}\)The entries in the cells should be(See part b for some of the values)
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Partial table and the graphs:
- The table and the graph indicate that the marginal function is a constant (23 to be precise)
- \(\displaystyle \Mcost (q)= 23\)
- The cost function is always increasing.
- The marginal function is always positive.