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6 March, 12:58

A company estimates that the marginal cost (in dollars per item) of producing x items is 1.61 - 0.002x. If the cost of producing one item is $556, find the cost of producing 100 items. (Round your answer to two decimal places.)

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  1. 6 March, 13:16
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    Answer: The answer is $715.19

    Explanation:

    The cost of producing the first item is given as $556.

    Therefore, the cost of producing 100 items or 99 additional items is roughly the same as:

    Take the marginal cost of 1 item = 1.61 - 0.002 (1) = 1.608.

    Multiply 1.608 by 99, we get:

    => 159.192.

    Adding this to the cost of producing the first item, we have:

    => 159.192 + 556

    = $715.192.

    Therefore, the cost of producing 100 items is approximately $715.19
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