A linear cost function is C(x) = 2x + 400. (Assume C is measured in dollars.) (a) What are the slope and the C-intercept? slope 2 C-intercept 400 (b) What is the marginal cost MC ? MC = What does the marginal cost mean? If production is increased by this many units, the cost increases by $1. Each additional unit produced reduces the cost by this much (in dollars). If production is increased by this many units, the cost decreases by $1. Each additional unit produced costs this much (in dollars). (c) What are the fixed costs? $ (d) How are your answers to parts (a), (b), and (c) related? slope = fixed costs, and C-intercept = marginal cost C-intercept slope = marginal cost slope C-intercept = marginal cost slope = marginal cost, and C-intercept = fixed costs (e) What is the cost of producing one more item if 50 are currently being produced? $ What is the cost of producing one more item if 100 are currently being produced? $