Homework SourseThe TOTAL cost of producing x units of some product is given
The TOTAL cost of producing x units of some product is given by C(x)=3x^2 - 95x + 14,700 (x>0). How many units should be produced to minimize the AVERAGE cost per unit? What is the minimum average cost? Show that it is a minimum. What is the marginal cost?
Solution
cost per unit u(x)= 3x-95+14700/x minimum cost per unit is when d/dx u(x) =0 3-14700/x^2 =0 x = 70 Minimum average cost = 325 per unit
