Suppose that c(x) = x³ – 20x2 + 20, 000x is the cost of manufacturing x items. Find the production level that will minimize the average cost of making x items.

Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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(a) Suppose that c(x) = x³ – 20x² + 20, 000x is the cost of manufacturing x items. Find
the production level that will minimize the average cost of making x items.
(b) Custom Office makes a line of executive desks. It is estimated that the total cost for
making x units of their Senior Executive model is
C(x) = 100x + 200,000
dollars/year.
(i) Find the average cost function C.
(ii) Find the marginal average cost function C'.
(iii) What happens to C when x is very large? Interpret your results.
Transcribed Image Text:(a) Suppose that c(x) = x³ – 20x² + 20, 000x is the cost of manufacturing x items. Find the production level that will minimize the average cost of making x items. (b) Custom Office makes a line of executive desks. It is estimated that the total cost for making x units of their Senior Executive model is C(x) = 100x + 200,000 dollars/year. (i) Find the average cost function C. (ii) Find the marginal average cost function C'. (iii) What happens to C when x is very large? Interpret your results.
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