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<blockquote data-quote="Tom Riddle" data-source="post: 7308268" data-attributes="member: 47610"><p><span style="font-size: 18px"><span style="color: Blue">I think I got it. </span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">In the very first answer (409) we assumed (incorrectly) the Total Cost formula to be linear</span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">Because we thought MC = [ TC(10) - TC(9) ]/1 . See that this is like taking the gradient of a straight line?</span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">But turns out this is not the case. TC is NOT a linear equation. So to get the proper gradient we HAVE to calculate the derivative. </span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">The derivative will yield the MC, and substituting 10 will give the answer. </span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue"><span style="font-size: 22px"><span style="color: Red">So in short, 434 is the correct answer.</span></span> </span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">The reason we got 409 earlier is because the assumption that TC is linear is not a bad assumption. So we get an answer close to the real one. </span></span></p><p><span style="font-size: 18px"><span style="color: Blue"></span></span></p><p><span style="font-size: 18px"><span style="color: Blue">P.S - sorry for typing all this in English. I find typing in Sinhala a bit of a pain. e wunaata mata sinhala puluwan <img src="/styles/default/xenforo/smilies/default/yes.gif" class="smilie" loading="lazy" alt=":yes:" title="Yes :yes:" data-shortname=":yes:" /></span></span></p></blockquote><p></p>
[QUOTE="Tom Riddle, post: 7308268, member: 47610"] [SIZE="5"][COLOR="Blue"]I think I got it. In the very first answer (409) we assumed (incorrectly) the Total Cost formula to be linear Because we thought MC = [ TC(10) - TC(9) ]/1 . See that this is like taking the gradient of a straight line? But turns out this is not the case. TC is NOT a linear equation. So to get the proper gradient we HAVE to calculate the derivative. The derivative will yield the MC, and substituting 10 will give the answer. [SIZE="6"][COLOR="Red"]So in short, 434 is the correct answer.[/COLOR][/SIZE] The reason we got 409 earlier is because the assumption that TC is linear is not a bad assumption. So we get an answer close to the real one. P.S - sorry for typing all this in English. I find typing in Sinhala a bit of a pain. e wunaata mata sinhala puluwan :yes:[/COLOR][/SIZE] [/QUOTE]
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