A start-up company estimates its production cost for custom drones (where is measured…
MATHEMATICS · Multi-part · AP · Calculus AB · Contextual Applications of Differentiation · Contextual Applications of Differentiation
Problem
A start-up company estimates its production cost for q custom drones (where q is measured in tens of drones) with the function
C(q)=60q3−315q2+600q+500,
where C(q) is measured in dollars.
Answer the following. Show all work, and include appropriate units.
(a) Calculate the marginal cost when the company is producing 100 drones.
(b) Use the result from part (a) to approximate the additional cost the company should expect if production is increased from 100 drones to 103 drones. Clearly state any assumptions in your approximation.