Question

Your factory produces lemon-scented widgets. You know that each unit is cheaper, the more you produce. But you also know that costs will eventually go up if you make too many widgets, due to the costs of storage of the overstock. The guy in accounting says that your cost for producing x thousands of units a day can be approximated by the formula
C = 0.04x^2 – 8.504x + 25302.

Find the daily production level that will minimize your costs.

Answer 1

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