Chapter 11.2, Problem 12E

Marginal and Average Cost: PlayStation 4’s Assume that it costs Sony approximately

$C\left(x\right)=800,000+340x+0.0005x^2.$ dollars to manufacture x PlayStation 4’s in an hour.

a. Find the marginal cost function, and use it to estimate how fast the cost is increasing when $x=60,000$. Compare this with the exact cost of producing the 60,001st PlayStation

b. Find the average cost function $\bar{C}\left(x\right)$ and the average cost to produce the first 60,000 PlayStation 4’s.

c. Using your answers to parts (a) and (b), determine whether the average cost is rising or falling at a production level of 60,000 PlayStation 4’s.