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Consumer & Producer Surplus · Question 1 of 70

Question 1

EasyOriginal question

The marginal cost of making xx units is 3x2−10x+153x^{2} - 10x + 15 rupees, and the fixed cost is ₹400. What is the total cost function?

Options for question 1

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Total cost is the integral of marginal cost: C(x)=x3−5x2+15x+kC(x) = x^{3} - 5x^{2} + 15x + k.

  2. The constant is the fixed cost, C(0)=400C(0) = 400: C(x)=x3−5x2+15x+400C(x) = x^{3} - 5x^{2} + 15x + 400.

Worth noting

Without the 400 the cost of making nothing would be zero, but the fixed cost is paid anyway.

Concept
Total cost from marginal cost and fixed cost
Typical time
60 s
Your time
—
The rule this testsTotal cost from marginal cost
Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.