### Average Cost Function Calculation**Problem Statement:**Find the average cost function if cost and revenue are given by:\[ C(x) = 127 + 8.6x \]and \[ R(x) = 3x - 0.04x^2 \]**Solution:**The average cost function $ \overline{C}(x) $ is calculated as:\[ \overline{C}(x) = \frac{C(x)}{x} \]where $ C(x) $ is the total cost function. Given that:\[ C(x) = 127 + 8.6x \]The average cost function is:\[ \overline{C}(x) = \frac{127 + 8.6x}{x} \]### Final Result:The average cost function is:\[ \overline{C}(x) = \frac{127 + 8.6x}{x} \]For further learning, you can analyze how changes in $ x $, the number of units produced, affect the average cost function. This is a fundamental concept in cost analysis in economics and helps in determining the most efficient level of production.

Given cost function:- C(x) = 127 + 8.6x x = units of output produced

Answered: Find the average cost function if cost…

Find the average cost function if cost and revenue are given by C(x) = 127 + 8.6x and R(x) = 3x-0.04x. The average cost function is C(x) =| .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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