A company is planning to manufacture mountain bikes. Fixed monthly cost will be $100,000 and it will cost $100 to produce each bicycle. a. Write the cost function, C, of producing x mountain bikes. b. Write the average cost function, C, of producing x mountain bikes. c. How many mountain bikes must be produced each month for the company to have an average cost of $300 per bike?
A company is planning to manufacture mountain bikes. Fixed monthly cost will be $100,000 and it will cost $100 to produce each bicycle. a. Write the cost function, C, of producing x mountain bikes. b. Write the average cost function, C, of producing x mountain bikes. c. How many mountain bikes must be produced each month for the company to have an average cost of $300 per bike?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![A company is planning to manufacture mountain bikes.
Fixed monthly cost will be $100,000 and it will cost $100 to
produce each bicycle.
a. Write the cost function, C, of producing x mountain
bikes.
b. Write the average cost function, C, of producing
x mountain bikes.
c. How many mountain bikes must be produced each
month for the company to have an average cost of $300
per bike?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e07f225-2a40-424c-b0b4-4bd461f0e990%2Fbe239f52-e083-41be-a3a9-c351c57331ff%2Fs4h0wo_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company is planning to manufacture mountain bikes.
Fixed monthly cost will be $100,000 and it will cost $100 to
produce each bicycle.
a. Write the cost function, C, of producing x mountain
bikes.
b. Write the average cost function, C, of producing
x mountain bikes.
c. How many mountain bikes must be produced each
month for the company to have an average cost of $300
per bike?
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