The total cost (in dollars) of manufacturing x auto body frames is C(x) = 80,000 + 900x. (A) Find the average cost per unit if 500 frames are produced. (B) Find the marginai average cost at a production level of 500 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 501 frames are produced. (A) If 500 frames are produced, the average cost is $ per frame. (B) The marginal average cost at a production level of 500 units is $ per frame. (Round to the nearest cent as needed.) (C) Using the results from parts (A) and (B), the estimate of the average cost per frame if 501 frames are produced is $. (Round to the nearest cent as needed.)

The total cost (in dollars) of manufacturing x auto body frames is C(x) = 80,000 + 900x. (A) Find the average cost per unit if 500 frames are produced. (B) Find the marginai average cost at a production level of 500 units. (C) Use the results from parts (A) and (B) to estimate the average cost per frame if 501 frames are produced. (A) If 500 frames are produced, the average cost is $ per frame. (B) The marginal average cost at a production level of 500 units is $ per frame. (Round to the nearest cent as needed.) (C) Using the results from parts (A) and (B), the estimate of the average cost per frame if 501 frames are produced is $. (Round to the nearest cent as needed.)

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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