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2. A company determines that it will cost C(x) = 2500+ 4x +.005x² dollars to

produce exactly x units of a certain kind of couch, and it will collect

R(x) = 16x - .002x² dollars in revenue.

a) Use the marginal cost function to estimate the cost of producing the 101st

couch. (10 points)

b) How many couches should be produced in order to maximize profit?

(10 points)

Fig: 1