Only solve part D. 3. The total cost for a company to produce x units of a certain commodity is given byC(x) = 4x2 + 83x + 144.Market research finds that if the company produces x units of the product, themaximum price per unit that they should charge in order to sell all of them is givenbyp(x) = 237 – 3x.(a) Use marginal analysis to estimate the cost of producing the eighth unit.(b) Find the actual cost of producing the eighth unit.(c) Find the level of production that maximizes the company's profits, and calculatethe maximum profit.(d) Find the minimum average production cost per unit and the level of productionthat minimizes this average cost.

Average cost(AC) is defined as total cost(TC) divided by the total units produced. Here, units are…

Answered: (d) Find the minimum average production…

Business

Economics

(d) Find the minimum average production cost per unit and the level of production that minimizes this average cost.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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