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laila [671]
3 years ago
15

Your company is planning to air a number of television commercials during a television network's presentation of the an awards s

how. The network is charging your company $1.9 million per 30-second spot. Additional fixed costs (development and personnel costs) amount to $500,000, and the network has agreed to provide a discount of $160,000 x for x television spots.
Required:
Write down the cost function C, marginal cost function C’, and average cost function
Mathematics
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

This question is incomplete, the complete question is;

Your company is planning to air a number of television commercials during a television network's presentation of the an awards show. The network is charging your company $1.9 million per 30-second spot. Additional fixed costs (development and personnel costs) amount to $500,000, and the network has agreed to provide a discount of $160,000√x for x television spots.  

Required:

Write down the cost function C, marginal cost function C’, and average cost function

Answer:

- The  the cost function is 500,000 + 1,900,000x - 160,000√x

- the marginal cost function is 1,900,000 - (80000 /√x  )

- The  average cost function is 1,900,000 + [ 500,000 / x ] - [ 160,000 / √x ]

Step-by-step explanation:

Given the data in the question;

cost per spot = $1.9 million

Additional cost =  $500,000

discount = $160,000√x

 Let C(x) represent the cost ;

Cost x television spot = cost per spot × Number pf spots

Cost x television spot = $1.9 million × x

Cost x television spot = $1,900,000x

Now, the television set total cost will be;

C(x) = television cost + additional cost - discount  

C(x) = 500,000 + 1,900,000x - 160,000√x

Therefore, The  the cost function is 500,000 + 1,900,000x - 160,000√x

Marginal Cost Function;

Cost function C(x) = 500,000 + 1,900,000x - 160,000√x

we differentiate with respect to x

C'(x) = d/dx( 500,000 + 1,900,000x - 160,000√x )

= d/dx( 500000 ) + 1,900,000d/dx -160,000 d/d( √x )

= 0+ 1,900,000(1) -160,000( 1 / 2√x )

= 1,900,000 - (160,000 / 2√x  )

= 1,900,000 - (80000 /√x  )

Therefore, the marginal cost function is 1,900,000 - (80000 /√x  )

Average cost function;

Average cost function = C(x) / x

we substitute

Average cost function = [500,000 + 1,900,000x - 160,000√x] / x

=  [500,000 / x ] + [1,900,000x / x ]  - [ 160,000√x / x ]

=  [ 500,000 / x ] + 1,900,000 - [ 160,000√x / x ]

=  1,900,000 + [ 500,000 / x ] - [ 160,000 / √x ]

Therefore, The average cost function is 1,900,000 + [ 500,000 / x ] - [ 160,000 / √x ]

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