Chapter 4, Problem 31RE

(a)

To determine

To graph: The average cost function $\overline{C}=\frac{100,000+0.9x}{x}\text{, }x>0$, if the cost function is $C=100,000+0.9x$, where $C$ is the cost, producing $x$ units of a product.

(b)

To determine

To calculate: The average cost $\overline{C}$, when production is $x=1000$, $x=10,000$ and $x=100,000$ respectively.

(c)

To determine

The least average cost per unit, that can be obtained when the production is increased.