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FINANCIAL MATHEMATICS

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The variable costs associated with a certain process are $0.65 per item. The fixed costs per day have been calculated as $200 with special costs estimated as $0.02X^2, where X is the size of the production run (that is, number of items produced). Therefore, the total cost function for the production of x items is: TC= 200-0.65x-0.02x^2

a.Calculate the size of the daily run that will minimize cost per item?

b.Find the cost of a days production for a run that minimize cost per item?

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