(a) Explanation Given information: The total cost of making x units of the Junior Executive model of desk is, C ( x ) = 80 x + 150 , 000 ( 0 ≤ x ≤ 20 , 000 ) (1) Definition used: The average cost function is defined as the ratio of the total cost incurred in the production of x units to the total number of x units produced. If C ( x ) is the total cost in producing x units, then the average cost function is, Average cost function C ¯ ( x ) (b) To determine The marginal average cost function C ¯ ′ . (c) To determine The effect on C ¯ ( x ) when x is very large.

APPLIED CALCULUS FOR MGRL, LIFE, SOC SCI

10th Edition

ISBN: 9780357465400

Author: Tan

Publisher: CENGAGE L

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Question

Chapter 3, Problem 68RE

(a)

To determine

The average cost function C¯ .

(b)

To determine

The marginal average cost function C¯′ .

(c)

To determine

The effect on C¯(x) when x is very large.

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Chapter 3, Problem 67RE

Chapter 3, Problem 69RE

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Chapter 3 Solutions

APPLIED CALCULUS FOR MGRL, LIFE, SOC SCI

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The average cost function C ¯ .

Solution Summary: The author defines the average cost function as the ratio of the total cost incurred in the production of x units.

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The average cost function C¯ .

The marginal average cost function C¯′ .

The effect on C¯(x) when x is very large.

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Chapter 3 Solutions