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?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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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?
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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