Question

For the given cost function C(x)=28900+400x+x^2 find:
-the production level that will minimize average cost
-the minimal average cost

Answer 1

set up the 1st derivative of the function and set it equal to zero, then solve for x...
C(x)=28900+400x+x^2
C'(x) = 400 + 2x
C'(x) = 0
400 + 2x = 0
2x = -400
x = -200
the cost will minimum when x = -200

Answer 2

thank you