Question

A certain company has a fixed cost of $200 per day. It costs the company $3.10 per unit to make its products. The company is

Answer 1

Answer:

A

Step-by-step explanation:

Answer 2

Answer:

a. The horizontal asymptote of y = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.

Step-by-step explanation:

A certain company has a fixed cost of $200 per day. Then it costs the company $3.10 per unit to make its products.

So, the total cost will be,

Then average cost f(x) will be,

As this an equation of hyperbola (rectangular hyperbola).

Its vertical asymptote is (equating denominator to zero),

i.e y axis.

Its horizontal asymptote is (leading coefficient of numerator divided by leading coefficient of denominator),

As x approaches infinity, f(x) approaches 3.10.

Therefore, option a is correct.