Question

If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost function C(x) given below. C(x) = 2,000 + 160x + 4x3/2 (a) Find the total cost at a production level of 1000 units. (Round your answer to the nearest cent.) $ 288491.11 Correct: Your answer is correct. (b) Find the average cost at a production level of 1000 units. (Round your answer to the nearest cent.) $ 288.49 Correct: Your answer is correct. per unit (c) Find the marginal cost at a production level of 1000 units. (Round your answer to the nearest cent.) $ 349.73 Correct: Your answer is correct. per unit (d) Find the production level that will minimize the average cost. (Round your answer to the nearest whole number.) units (e) What is the minimum average cost? (Round your answer to the nearest dollar.) $ per unit

Answer 1

Answer:

a) C(1,000)=288,491.11 $

b) c(1,000)=288.49 $/u

c) dC/dx(1,000)=349.74 $/u

d) x=100 u

e) c=220 $/u

Step-by-step explanation:

(a) Find the total cost at a production level of 1000 units.

$C(x) = 2,000 + 160x + 4x^{3/2}\\\\C(1,000)=2,000 + 160(1,000) + 4(1,000)^{3/2}\\\\C(1,000)=2,000+160,000+126,491.11= 288,491.11$

(b) Find the average cost at a production level of 1000 units.

$c(x)=C(x)/x\\\\c(1,000)=C(1,000)/1,000=288,491.11/1,000=288.49$

(c) Find the marginal cost at a production level of 1000 units.

$\frac{dC}{dx} =0+160+4*(3/2)x^{3/2-1}=160+6x^{1/2}\\\\dC/dx|_{1,000}=160+6*(1,000)^{1/2}=160+189.74=349.74$

(d) Find the production level that will minimize the average cost.

$c=2,000x^{-1}+160+4x^{1/2}\\\\dc/dx=2,000(-1)x^{-2}+0+4(1/2)x^{-1/2}=0\\\\-2,000x^{-2}+2x^{-1/2}=0\\\\2x^{-1/2}=2,000x^{-2}\\\\x^{-1/2+2}=1,000\\\\x^{3/2}=1,000\\\\x=1,000^{2/3}=100$

(e) What is the minimum average cost?

$c(x) = 2,000/x + 160 + 4x^{1/2}\\\\C(100)=2,000/100 + 160 + 4(100)^{1/2}=20+160+40=220$