Asked by Allyson Morgan on Jul 08, 2024

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If Green Acres Turf Farm's total cost of producing acres of sod is TC  5Q2  25Q  40, the marginal cost of producing the 10th acre of sod is

A) $125.
B) $40.
C) $25.
D) $75.
E) $275.

Total Cost

The full amount of expenses incurred by a firm in the production of goods or services, including both fixed and variable costs.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Sod

A layer of earth in which the roots of grass are embedded, commonly used for lawns, golf courses, and sports fields to quickly establish a green surface.

  • Compute the marginal and average costs from provided cost functions.
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GS
George SandersJul 09, 2024
Final Answer :
A
Explanation :
The marginal cost (MC) of producing the QthQ^{th}Qth unit is the change in total cost (TC) from producing one more unit, mathematically represented as MC=TC(Q)−TC(Q−1)MC = TC(Q) - TC(Q-1)MC=TC(Q)TC(Q1) . Given the total cost function TC=5Q2+25Q+40TC = 5Q^2 + 25Q + 40TC=5Q2+25Q+40 , to find the marginal cost of producing the 10th acre, we calculate the total cost for 10 acres and subtract the total cost for 9 acres. For Q=10Q = 10Q=10 , TC=5(10)2+25(10)+40=500+250+40=790TC = 5(10)^2 + 25(10) + 40 = 500 + 250 + 40 = 790TC=5(10)2+25(10)+40=500+250+40=790 . For Q=9Q = 9Q=9 , TC=5(9)2+25(9)+40=405+225+40=670TC = 5(9)^2 + 25(9) + 40 = 405 + 225 + 40 = 670TC=5(9)2+25(9)+40=405+225+40=670 . The marginal cost for the 10th acre is 790−670=120790 - 670 = 120790670=120 . However, since this option is not available, it appears there was a mistake in my calculation or interpretation. The correct approach to find the marginal cost is to differentiate the total cost function with respect to QQQ if we're looking for a formula-based approach, but based on the options provided and the initial method, there seems to be a misunderstanding or error in the provided solution steps. Re-evaluating the calculation or the interpretation of the options might be necessary.