CMA Foundation · Fundamentals of Business Mathematics and Statistics · Calculus - Application in Business
The marginal cost of a product at output x units is MC = 6x + 10 rupees per unit. If the fixed cost is Rs 500, the total cost of producing 20 units is:
Integrating marginal cost 6x + 10 gives 3x² + 10x, and the constant of integration is the fixed cost of Rs 500. At 20 units the total cost is 1,200 + 200 + 500 = Rs 1,900.
- ARs 1,900Correct
- BRs 1,400
- CRs 1,100
- DRs 1,600
Explanation
C(x) = ∫(6x+10)dx = 3x² + 10x + 500. At x = 20: 3(400) + 200 + 500 = 1,200 + 200 + 500 = 1,900. Rs 1,400 results from omitting the fixed cost... actually 1,200+200 = 1,400 omits the constant of integration, which is the fixed cost.
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