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The marginal cost of a product is given ...

The marginal cost of a product is given by MC = 2x + 30 and the fixed cost is Rs. 120. Find
(i) the total cost of producing 100 units.
(ii) the cost of increasing output from 100 to 200 units.

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The correct Answer is:
To solve the problem, we will follow these steps: ### Step 1: Understand the given information - The marginal cost (MC) is given by the equation: \[ MC = 2x + 30 \] - The fixed cost (FC) is given as: \[ FC = 120 \] ### Step 2: Find the total cost function The total cost (TC) can be found by integrating the marginal cost function with respect to \(x\): \[ TC = \int MC \, dx = \int (2x + 30) \, dx \] ### Step 3: Perform the integration Integrating \(2x + 30\): \[ TC = \int (2x + 30) \, dx = x^2 + 30x + C \] Where \(C\) is the constant of integration. ### Step 4: Determine the constant \(C\) To find \(C\), we use the fact that when \(x = 0\) (no units produced), the total cost is equal to the fixed cost: \[ TC(0) = FC = 120 \] Substituting \(x = 0\) into the total cost equation: \[ TC(0) = 0^2 + 30(0) + C = C = 120 \] Thus, the total cost function becomes: \[ TC = x^2 + 30x + 120 \] ### Step 5: Calculate the total cost of producing 100 units Now, we can find the total cost when \(x = 100\): \[ TC(100) = 100^2 + 30(100) + 120 \] Calculating this: \[ TC(100) = 10000 + 3000 + 120 = 13120 \] ### Step 6: Calculate the total cost of producing 200 units Next, we find the total cost when \(x = 200\): \[ TC(200) = 200^2 + 30(200) + 120 \] Calculating this: \[ TC(200) = 40000 + 6000 + 120 = 46120 \] ### Step 7: Calculate the cost of increasing output from 100 to 200 units The cost of increasing output from 100 to 200 units is given by: \[ \text{Cost increase} = TC(200) - TC(100) \] Substituting the values we calculated: \[ \text{Cost increase} = 46120 - 13120 = 33000 \] ### Final Answers (i) The total cost of producing 100 units is **Rs. 13120**. (ii) The cost of increasing output from 100 to 200 units is **Rs. 33000**.
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