📝 An Application To Economics

Q1. A company wants to locate an offshore oil‑drilling rig at the point where its total cost function \(C(x)\) is minimized. Which derivative condition must be satisfied at the optimal location?

💡 Difficulty: easy | ✅ Correct: B

Q2. The cost function for producing \(q\) units is \(C(q)=5q^{2}-200q+1500\). What output level minimizes total cost?

💡 Difficulty: medium | ✅ Correct: D

Q3. Demand is described by \(D(p)=500-4p\). What is the price elasticity of demand at \(p=50\)?

💡 Difficulty: hard | ✅ Correct: B