question archive Explanation: The following is an application of Marginal Analysis in Business and Economics

Subject:MathPrice:9.82 Bought3

Explanation: The following is an application of Marginal Analysis in Business and Economics. 'iou are required to apply your knowledge of the following: II Find marginal functions . Find the rate of change It Analyze the rate of change I Use Excel Problem. The price—demand equation and the cost function for the production of T'iis are given, respectively, by I = B??? — 20p and Clix) = 125I'J?? + 411x where I is the number ofT'iis that can he sold at a price of 3:: per W and C(x) is the total cost [in dollars] of producing x Ws. 3] h] C] d] e} f] s] h] Express {solve} the pricep as afunction ofthe demand I, and find the domain of this function. Find the marginal cost, and marginal average cost functions. Find the revenue function, Etc), and state its domain.{Hint: R[x) = x - :0} Find the marginal revenue, and marginal average revenue functions. Find RIBSUD) and R'(45??] and interpret these quantities. Graph the cost function and the revenue function on the same coordinate system by letting 3: takes values in the interval you found in part [a]. Then, find the break-even points, and indicate regions of loss and profit using intervals. [Use Excel] Using the cost function given above, and the revenue function you found in part [c], construct the profit function, P(x), by letting 1: takes values in the interval you found in part [a] [Use Excel]. Then find the marginal profit function algebraically. Find P'(4??{]) using the definition of the iimit, and then interpret the result. Lastly, compare P'(4{]?{]), i.e. the marginal pro?t at 4???, with the actual change in profit by considering the difference P(4{]?1) — PIE-?lm). What do you think? [Use Excel] (Hint: Review "Module ail—Excel Applications, Example 3"]

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