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Consumer & Producer Surplus · Question 3 of 70

What is the workshop's daily cost function?

Question 3

EasyOriginal question

A workshop's marginal cost is $MC = 6 + 2x$ and its marginal revenue is $MR = 30 - 4x$ , in rupees, for $x$ items a day. Its fixed cost is ₹20 a day.

What is the workshop's daily cost function?

C(x) = x^{2} + 6x

Correct answerYour answer

C(x) = 2x^{2} + 6x + 20

Correct answerYour answer

C(x) = 2 + 20

Correct answerYour answer

C(x) = x^{2} + 6x + 20

Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer D

Correct answer: D

$C(x) = \int (6 + 2x)\,dx = 6x + x^{2} + k$ .
At $x = 0$ the cost is the fixed ₹20, so $k = 20$ .

Worth noting

$x^{2} + 6x$ drops the constant; the fixed cost is what fixes it.

Concept: Cost from marginal cost
Typical timeTypical: 90 s
Your timeYours: —

The rule this testsTotal cost from marginal cost

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