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Worked Examples · Example 6

Q.The marginal cost of a firm is MC(x)=6x+4MC(x) = 6x+4 (in rupees per unit) and the fixed cost is ₹100. Find the total cost function TC(x)TC(x), and hence the total cost of producing 10 units.

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Step 1 — integrate the marginal cost function:

TC(x)=∫MC(x) dx=∫(6x+4) dx=3x2+4x+CTC(x) = \int MC(x)\,dx = \int (6x+4)\,dx = 3x^{2}+4x+C

Step 2 — fix the constant using the fixed cost: total cost at zero output equals the fixed cost, so TC(0)=100TC(0)=100:

3(0)2+4(0)+C=100⇒C=1003(0)^{2}+4(0)+C=100 \quad\Rightarrow\quad C=100

So the total cost function is:

TC(x)=3x2+4x+100TC(x) = 3x^{2}+4x+100

Step 3 — evaluate at x=10x=10:

TC(10)=3(10)2+4(10)+100=300+40+100=440TC(10)=3(10)^{2}+4(10)+100 = 300+40+100 = 440 …

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