Question

The equation for the cost in dollars of producing computer chips is y =.000015x^2-.03x+35. Where x is the number of chips produced . Find the number of chips that minimizes the cost. What is the cost for that number of chips?

Answer 1

In order to find the number of chips that would result in the minimum cost, we take the first derivative of the given equation. Note that the derivative refers to the slope of the graph at a given point. We can utilize this concept knowing that at the minimum or maximum point of a graph, the slope is zero. 

Taking the derivative of the given equation and equating it to zero, we have:

y' = (0.000015)(2)x - (0.03)x° + 0
0 = (0.00003)x - 0.03

Solving for x or the number of chips produced, we have x = 1000. We then substitute this value in the given equation, such that,

y = (0.000015)(1000)² - (0.03)(1000) + 35

The minimized cost, y, to produce 1000 chips is then calculated to be $20.