Suppose that a software company produces CDs (computer disks) at a cost of $2 each, and fixed costs are $50. The cost function, the total cost of producing x disks, will then be C(x) = 2x + 60, and the average cost per unit will be the total cost divided by the number of units. (a) Find lim AC(x), which is the unit or marginal cost. X- lim AC(x) = (b) Sketch the graph of AC(x), showing the horizontal asymptote. [Note: Your graph should be an illustration of the general business principle for linear cost functions: In the long run, average cost approaches marginal cost.] 40 30 20 40 30 LLL 20 10 10 50 y 40 AC(x) = - 2x + 60 30 20 10 O 10 10 20 20 30 30 40 40 50 y G 10 20 30 40 y 50 30 20 10 10 20 30 40
Suppose that a software company produces CDs (computer disks) at a cost of $2 each, and fixed costs are $50. The cost function, the total cost of producing x disks, will then be C(x) = 2x + 60, and the average cost per unit will be the total cost divided by the number of units. (a) Find lim AC(x), which is the unit or marginal cost. X- lim AC(x) = (b) Sketch the graph of AC(x), showing the horizontal asymptote. [Note: Your graph should be an illustration of the general business principle for linear cost functions: In the long run, average cost approaches marginal cost.] 40 30 20 40 30 LLL 20 10 10 50 y 40 AC(x) = - 2x + 60 30 20 10 O 10 10 20 20 30 30 40 40 50 y G 10 20 30 40 y 50 30 20 10 10 20 30 40
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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![Suppose that a software company produces CDs (computer disks) at a cost of $2 each, and fixed costs are $60. The cost function, the total cost of producing x disks, will then be C(x) = 2x + 50,
and the average cost per unit will be the total cost divided by the number of units.
(a) Find lim AC(x), which is the unit or marginal cost.
lim AC(x)=L
(b) Sketch the graph of AC(x), showing the horizontal asymptote. [Note: Your graph should be an illustration of the general business principle for linear cost functions: In the long run, average
cost approaches marginal cost.]
y
50
40
O
30
20
10
y
50
40
AC(x) =
30
- 2x + 60
20
10
10
10
20
20
30
30
40
40
50
A
y
50
40
30
20
10
10
20
30
40
50
y
50
40
30
20
10
10
20
30
40](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4b1b957a-ebea-49b1-aadb-aeda6a2cceec%2F11bf27d5-1db3-4a57-b19a-9198f723b125%2Ftvbk96_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that a software company produces CDs (computer disks) at a cost of $2 each, and fixed costs are $60. The cost function, the total cost of producing x disks, will then be C(x) = 2x + 50,
and the average cost per unit will be the total cost divided by the number of units.
(a) Find lim AC(x), which is the unit or marginal cost.
lim AC(x)=L
(b) Sketch the graph of AC(x), showing the horizontal asymptote. [Note: Your graph should be an illustration of the general business principle for linear cost functions: In the long run, average
cost approaches marginal cost.]
y
50
40
O
30
20
10
y
50
40
AC(x) =
30
- 2x + 60
20
10
10
10
20
20
30
30
40
40
50
A
y
50
40
30
20
10
10
20
30
40
50
y
50
40
30
20
10
10
20
30
40
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