Wednesday

July 30, 2014

July 30, 2014

Posted by **Kiersyn** on Tuesday, February 9, 2010 at 8:01am.

- Managerial Economics -
**dongo**, Tuesday, February 9, 2010 at 8:04amA so-called cubic function is nothing else than a polynomial function of degree 3.

f(x)=ax^3+bx^2+cx+d, where a,b,c,d are fixed, but not determined constant coefficients, imposed the condition a != 0.

- Managerial Economics -
**Kiersyn**, Tuesday, February 9, 2010 at 9:56amWow, this definition is like greek. What is a polynomial function of degree 3? I know what a constant is and also a coefficent. But what is "imposed the condition a!=0? Can someone explain this in a simpler way that doesn't involve algebra or calculus? Thanks

- Managerial Economics -
**Greek needed**, Thursday, February 3, 2011 at 12:59pmBasically, the point of cubic is that you can use the cube (third power) of the number of things produced to predict the total cost of making that many things. It so happens that x^3 (x cubed) very nicely represents certain economies/not of scale in production; it "looks right".

So the whole point is that some algebra can provide a nice formula that approximates the reality of cost functions for which marginal cost (the cost of "making one more") first goes down, then goes up. And some calculus can confirm it.

**Related Questions**

managerial economics - Can someone break down the basic components of managerial...

managerial economics - EXPLAIN 5 FUNCTIONS OF MANAGERIAL ECONOMICS WITH SUITABLE...

MANAGERIAL ECONOMICS - EXPLAIN THE ROLE AND RESPONSIBILITY OF MANAGERIAL ...

Managerial Economics - Managerial Economics uses_____to help solve problems. a. ...

managerial economoics - close relationship between mnagement and economics has ...

managerial economics - Can someone explain cost structure and market structure ...

managerial economics - Can someone explain cost structure and market structure ...

Managerial Economics - For a cost function C = 100 + 10Q + Q2, the average ...

managerial economics - firms demand function,p=24-0.54q and the average cost ...

economics - 1. why is the subject of managerial economics relevant to problem of...