# Calculus

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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 -

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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