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 = 3x - 95 + 14700/x 3 - 14700/x^2 = 0 x^2 = 14700/3 x^2 = 4900 x = 70 C(x)/x = 210 - 95 + 14700/70 = 325 f\'(x) gors from -ve to +ve so minimum.
