The total cost (in dollars) of manufacturing x auto body frames is C(x) = 30,000 + 200x. (A) Find the average cost per unit if 100 frames are produced. (B) Find the marginal average cost at a production level of 100 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 101 frames are produced.

The total cost (in dollars) of manufacturing x auto body frames is C(x) = 30,000 + 200x. (A) Find the average cost per unit if 100 frames are produced. (B) Find the marginal average cost at a production level of 100 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 101 frames are produced.

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

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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