CMA Foundation · Fundamentals of Business Mathematics and Statistics · Calculus - Application in Business
The marginal cost of producing x units of a product at Sundaram Traders is MC = 6x + 10 (in rupees). If the fixed cost is Rs 200, what is the total cost of producing 10 units?
The total cost of 10 units is Rs 600. Integrating marginal cost gives 3x² + 10x plus the fixed cost of 200 as the constant, so at x = 10 the cost is 300 + 100 + 200 = 600.
- ARs 600Correct
- BRs 500
- CRs 400
- DRs 300
Explanation
C(x) = ∫(6x + 10)dx = 3x² + 10x + k. With fixed cost k = 200, C(10) = 3(100) + 100 + 200 = 600. Rs 400 results from omitting the fixed cost (300 + 100 = 400).
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