Paula is working on her English essay. She already has 150 words written and has planned out the rest. Paula's essay must be 3,0
1 answer:
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Answer:
(a) The average cost function is
(b) The marginal average cost function is
(c) The average cost approaches to 95 if the production level is very high.
Step-by-step explanation:
(a) Suppose is a total cost function. Then the average cost function, denoted by
, is
We know that the total cost for making x units of their Senior Executive model is given by the function
The average cost function is
(b) The derivative of the average cost function, called the marginal average cost function, measures the rate of change of the average cost function with respect to the number of units produced.
The marginal average cost function is
(c) The average cost approaches to 95 if the production level is very high.