use the Net Change Theorem to find the cost of producing the

C

calchere

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Sep 13, 2006
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If the marginal cost of manufacturing x meters of a fabric is:

. . .C'(x) = 5 - 0.008x + 0.000009x^2

and the fixed start-up cost is:

. . .C(0) = 20,000

then use the Net Change Theorem to find the cost of producing the first 2,000 units.

My work:

. . .5 -0.008(2000) + 0.000009(2000)^2 = 25

. . .int[from 0 to 2000] [-20 - 0.008x + 0.000009x^2] dx

. . .-20x - 0.004x^2 + 0.000003x^3, from 0 to 2,000

. . .-20(2000) - 0.004(2000)^2 + 0.000003(2000)^3 = -32,000

The answer is supposed to be "38,000". I'm not sure what I'm doing wrong.
 
What is the "Net Change Theorem"?

Thank you.

Eliz.
 
calchere said:
i think it is referring to the consumer surplus demand curve.
Click to expand...
Your book doesn't list this Theorem that it wants you to use...? (The name isn't standard so we would need to be provided with the definition, is why I ask.)

You might want to ask your instructor what this Theorem is, since you're being expected to use it. The particulars of the solution method might depend on the wording.

Thank you.

Eliz.
 
edit.

int(a,b) F'(x)dx = F(b) - F(a)

for some reason it was in a diff. chapter
 
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