Chapter 6.1, Problem 93E

A business that manufactures small alarm clocks has weekly fixed costs of $5000. The average cost per clock for the business to manufacture x clocks is described by

$\frac{0.5x+5000}{x}.$

a. Find the average cost when $x\text{=100,1000}\text{and}\text{10,000}$

b. Like all other businesses, the alarm clock must be sold for at least $$ more than what it costs to manufacture. Due to competition form a larger company, the clocks can be sold for $$ each and no more. Our small manufacturer can only produce 2000 clocks weekly. Does this business have much of a future? Explain.