Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C(x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C(x). Problem Set question: The cost, in dollars, of producing x units of a certain item is given byC(x)=5x−4x−1−−−−√. Find the production level that minimizes the average cost per unit. The number of units that minimizes the average cost is . Introduction to Calculus in Economics:Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function isthe cost function function C (x), the cost of producing æ items (of whatever they are selling). This question deals with just the cost function C (x).Problem Set question:The cost, in dollars, of producing æ units of a certain item is given byC (x) = 5x – 4/ – 1.Find the production level that minimizes the average cost per unit.The number of units that minimizes the average cost is Number

Average cost (AC) is defined as the per unit cost of producing a commodity. AC = TC/x

Answered: The cost, in dollars, of producing æ…

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 3E

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Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is the cost function function C(x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C(x).

Problem Set question:

The cost, in dollars, of producing x units of a certain item is given by

C(x)=5x−4x−1−−−−√.

Find the production level that minimizes the average cost per unit.

The number of units that minimizes the average cost is .

Introduction to Calculus in Economics:
Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is
the cost function function C (x), the cost of producing æ items (of whatever they are selling). This question deals with just the cost function C (x).
Problem Set question:
The cost, in dollars, of producing æ units of a certain item is given by
C (x) = 5x – 4/ – 1.
Find the production level that minimizes the average cost per unit.
The number of units that minimizes the average cost is Number

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