Posted by Jane on .
Here's one more that I do not understand
A company estimates that the cost ($) of producing x units of a certain product is given by:
C= 800 + .04x + .0002x^2
Find the production level that minimizes the average cost per unit.
Thank you so much
your question makes no sense.
clearly C is increasing as x increases, and C will have a minimum of 800 when x = 0
Their best bet would be not to make any ???
check your typing, I think it should be -.002x^2 perhaps?
Sorry for the typo - you are correct it should be -.002x^2
in that case, very easy
dC/dx = .04 - .004x
= 0 and solve for x
x = .004/.04 = ...
I still do not see what the answer would be . Is x = .001