Practice Problems 4

1. A company manufactures automatic transmissions for cars. The total weekly

cost (in dollars) of producing x transmissions is given by

𝐶(𝑥) = 50000 + 600𝑥 − 0.75𝑥

(a) Find the marginal cost function.

(b) Find the marginal cost at a production level of 200 transmissions per week.
(c) Interpret the results of part (b).
(d) Find the exact cost of producing the 201st transmission.

2. The price-demand equation and the cost function for the production of table
saws are given:

𝑥 = 6000 − 30𝑝 and 𝐶(𝑥) = 72000 + 60𝑥

where x is the number of saws that can be sold at a price of $p per saw and
𝐶(𝑥) is the total cost (in dollars) of producing 𝑥 saws.

(a) Express the price 𝑝 as a function of the demand 𝑥.

(b) Find the marginal cost.
(c) Find the revenue function.
(d) Find the marginal revenue.
(e) Find the marginal revenue at 𝑥 = 1500 and 𝑥 = 4500 and interpret these
results.
(f) Find the break-even points and interpret the them.
(g) Find the profit function in terms of 𝑥.
(h) Find the marginal profit.
(i) Find the marginal profit at 𝑥 = 1500 and 𝑥 = 3000 and interpret these
results.
(j) Find the production level for which profit is maximized.

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Dr. Andreas Michaelides BUS195A – Fall 2021
 3. The price – demand equation and the cost function for the production of
televisions are given:
𝑥 = 9,000 − 30𝑝 and 𝐶(𝑥) = 150,000 + 30𝑥

where 𝑥 is the number of televisions that can be sold at a price of $p per

television and 𝐶(𝑥) is the total cost (in dollars) of producing 𝑥 televisions.
(a) Express the price 𝑝 as a function of the demand 𝑥.
(b) Find the marginal cost.
(c) Find the revenue function.
(d) Find the marginal revenue.
(e) Find the marginal revenue at 𝑥 = 3,000 and 𝑥 = 6,000 and interpret these
results.
(f) Find the break-even points and interpret the them.
(g) Find the profit function in terms of x.
(h) Find the marginal profit.
(i) Find the marginal profit at 𝑥 = 1,500 and 𝑥 = 4,500 and interpret these
results.
(j) Find the production level for which profit is maximized.

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Dr. Andreas Michaelides BUS195A – Fall 2021
 4. Find the derivative 𝑓′(𝑥) of each of the following functions:
(a) 𝑓(𝑥) = − √𝑥 + +𝑒 (b) 𝑓(𝑥) = 𝑒 𝑥 − +𝑒 −𝑥

(c) 𝑓(𝑥) = 𝑒 ∙ ln 𝑥 (d) 𝑓(𝑥) =

(e) 𝑓(𝑥) = (f) 𝑓(𝑥) = + √𝑥 ∙𝑒

√

5. Consider the function 𝑓(𝑥) = 3 − 2𝑥 + 4𝑒

Find the equation of the tangent line to the curve 𝑦 = 𝑓(𝑥) at the point (0, 7).

6. Consider the function𝑓(𝑥) = 4𝑥 ∙ ln 𝑥 − 6𝑥

Find the equation of the tangent line to the curve 𝑦 = 𝑓(𝑥) at the point (1, −6).

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Dr. Andreas Michaelides BUS195A – Fall 2021