Posted by Renee on Monday, November 5, 2012 at 2:35pm.
Suppose the total cost function for manufacturing a certain product C(x) is given by the function below, where C (x) is measured in dollars and x represents the number of units produced. Find the level of production that will minimize the average cost. (Round your answer to the nearest whole number.)
C(x)=0.2(0.01x^2+132)
How many units?

math  Steve, Monday, November 5, 2012 at 3:41pm
C(x) is the total cost for x units, so the average cost is C(x)/x per unit.
A(x) = C(x)/x = 0.2(0.01x + 132/x)
to minimize A(x), find where dA/dx = 0
dA/dx = 0.2(0.01  132/x^2)
dA/dx = 0 when x = 20√33 = 114.89 = 115
Answer This Question
Related Questions
 math  Suppose the total cost function for manufacturing a certain product C(x) ...
 math  The daily total cost (in dollars) incurred by Trappee and Sons for ...
 math  The daily total cost (in dollars) incurred by Trappee and Sons for ...
 Math  The daily total cost (in dollars) incurred by Trappee and Sons for ...
 Economics  A CobbDouglas production function for new company is given by &#...
 Economics/Math  Suppose you are the manager of a small chemical company ...
 MATH  11.) A company produces a product for which the variable cost is $12.30 ...
 Algebra  83. Minimizing Marginal Cost The marginal cost of a product can be ...
 math  the cost per hour of running an assembly line in a manufacturing plant is...
 PreCal  The total cost (in thousands of dollars) of a machine manufacturing ...
More Related Questions