Homework SourseThe total cost to produce x units of perfume is Cx 2x 97x
The total cost to produce x units of perfume is C(x) = (2x - 9)/(7x + 2).
a. Find the average cost to produce 10 units.
b. Find the marginal average cost function.
a. Find the average cost to produce 10 units.
b. Find the marginal average cost function.
Solution
Total cost to produce 10 units = C(10) = (2*10-9)/(7*10 + 2) = 0.153
Hence average cost to produce 10 units = 0.153/10 = 0.0153
Average cost function AC(x) = C(x)/x = (2x - 9)/(7x2 + 2x)
Hence marginal average cost function = d(AC)/dx = (2(7x2 + 2x) - (14x + 2)(2x - 9)) / (7x2 + 2x)2
= (-14x2 + 126x + 18)/ (7x2 + 2x)2
