The start-up cost of a company is $150,000. It
costs $.17 to manufacture each headset. Graph
the function that represents the average
cost per headset as a function of the number of headsets produced.
Let x be the number of headsets produced. The total cost to produce x headsets can be represented by the function C(x) = 150000 + 0.17x.
The average cost per headset can be calculated by dividing the total cost by the number of headsets produced, so the average cost function AC(x) is:
AC(x) = (150000 + 0.17x) / x = 150000/x + 0.17
Graphing this function will give a downward sloping curve that approaches $0.17 as the number of headsets produced increases. The point where the curve intersects the y-axis represents the average cost per headset when no headsets are produced, which is $150,000.