# You are a monopolist and your inverse demand curve and cost function are the following:...

## Question:

You are a monopolist and your inverse demand curve and cost function are the following: P=90-{eq}\frac{3Q}{2} {/eq}. TC(Q)=400Q+{eq}\frac{Q^3}{2} {/eq}. What is the MC (Marginal Cost)?

## Cost Analysis:

Cost analysis refers to the analysis of resources that are used in the production of goods and services. Cost analysis is essential in that they assist the firm in formulating a sound pricing strategy. Cost can be broken down into the following classifications:

- Fixed cost.
- Variable cost.
- Mixed cost

## Answer and Explanation: 1

The marginal cost refers to the additional cost of producing an extra unit of output. Marginal cost is the **derivative of the total cost function**.

- {eq}\text{Marginal cost}=\dfrac{\delta \text{TC} }{\delta \text{Quantity}} {/eq}

Given the total cost is:

- TC(Q)=400Q+{eq}\frac{Q^3}{2} {/eq}.

Therefore marginal cost is:

- {eq}\text{Marginal cost}=400+\dfrac{3}{2}\text{Q}^{2} {/eq}

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Chapter 9 / Lesson 3Actual project cost is defined by the amount of money exchanged, not just estimated. Explore costs of projects through the types of cost—fixed, variable, direct, and sunk— and the categories of cost—actual, standard, and total—including cost variance.

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