If C(x) is the cost of producing x units of a commodity, then the average cost p
ID: 2893398 • Letter: I
Question
If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost function C(x) given below. (Round your answers to the nearest cent.)
C(x) = 16,000 + 240x + 4x3/2
(a) Find the total cost at a production level of 1000 units.
$
(b) Find the average cost at a production level of 1000 units.
$ per unit
(c) Find the marginal cost at a production level of 1000 units.
$ per unit
(d) Find the production level that will minimize the average cost.
units
(e) What is the minimum average cost?
$ per unit
Explanation / Answer
C(x)=16000+240x+4x3/2
a.C(1000)=16000+240(1000)+4(1000)3/2 =$287622.8
c. Marginal cost,C'(1000)=240 +4(3/2)(1000)1/2=$429.7