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posted by .

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

  • Calculus -

    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?

  • Calculus -

    Sorry for the typo - you are correct it should be -.002x^2

  • Calculus -

    in that case, very easy
    dC/dx = .04 - .004x
    = 0 and solve for x

    x = .004/.04 = ...

  • Calculus -

    I still do not see what the answer would be . Is x = .001

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