The daily cost, USD, to a company of producing pairs of running shoes can be modelled by the function
, for .
Write down the daily cost to the company if no pairs of running shoes are produced.
The marginal cost of production is the cost of producing one additional pair of shoes. It can be approximated by the gradient of the cost function.
Find an expression for the marginal cost, .
Find the marginal cost when
(i) 40 pairs of running shoes are produced
(ii) 90 pairs of running shoes are produced.
The optimum level of production is reached when the marginal revenue, , equals the marginal cost, . For this company, .
Find the optimum level of production.
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