Marginal average cost. In Section 1.6 we defined the average cost of producing x units of a product in terms of the total cost C ( x ) = b y A ( x ) = C ( x ) / x Find a general expression for marginal average cost A ' ( x ) .
Marginal average cost. In Section 1.6 we defined the average cost of producing x units of a product in terms of the total cost C ( x ) = b y A ( x ) = C ( x ) / x Find a general expression for marginal average cost A ' ( x ) .
Solution Summary: The author explains how to calculate the general expression for marginal average cost, Aprime
Marginal average cost. In Section 1.6 we defined the average cost of producing x units of a product in terms of the total cost
C
(
x
)
=
b
y
A
(
x
)
=
C
(
x
)
/
x
Find a general expression for marginal average cost
A
'
(
x
)
.
Let C(x) be the cost function and R(x) the revenue function. Compute the marginal cost, marginal revenue, and the marginal profit functions.
C(x) = 0.0005x^3 - 0.012x^2 + 100x + 30,000
R(x) = 450x
For that cost function C(x)= 40 + x -1/2x^2, use the marginal average cost when x=2 to estimate the average when x=3
The cost in dollars of producing alarm clocks is given by
C(x) = 50x³ – 750x²+ 3740x +3750,
where x is in units of 1000.
(a) Calculate the average cost at x = 4, 6, 8, and 10.
(b) Use the graphical interpretation of average cost to find the produc-
tion level xo at which average cost is lowest. What is the relation between
average cost and marginal cost at xo (see Figure 16)?
C (S)
15,000 -
10,000 -
5000
1 2 3 4 5 6 7 8 9 10
FIGURE 16 Cost function C(x) = 50x³ – 750x² + 3740x + 3750.
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