Question

Can someone walk me through this problem please?

Answer 1

a) to find the cost at production level 1050, just compute \[C(1050) = 54\sqrt{1050}+\frac{1050^2}{1000} =\]

b) to find the average cost at production level 1050, compute \[\frac{C(1050)}{1050}=\]

c) you've already got an answer

d) to find the production level that minimizes average cost, take the derivative of \[\frac{C(x)}{x} \] and set it equal to 0. The value of \(x\) that makes \[\frac{d}{dx}[\frac{C(x)}{x}] = 0\] will be the value that minimizes average cost. You'll get two solutions, actually, but one of them will clearly not apply.

e) evaluate \[\frac{C(x)}{x}\] at the value of \(x\) found in d) to get the minimal average cost.