Producing 73.8 units gives the lowest possible average cost.
The average cost (AC) is the ratio of the total cost to the number of units produced. It is given by:
AC = C(x) / x
AC = (0.2x³ – 24x² + 1514x +30064) / x
AC = 0.2x² - 24x + 1514 + 30064/x
The lowest possible average cost is at AC' = 0. Hence differentiating the average cost, gives:
AC' = 0.4x - 24 - 30064/x²
0.4x - 24 - 30064/x² = 0
0.4x³ - 24x² - 30064 = 0
Solving the cubic polynomial gives:
x = 73.8 units
Therefore the lowest possible average cost is when 73.8 units are produced.
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Answer:
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I think this is right
Answer:
0
Since 8 is too small to be rounded to 100, it's rounded down to 0.
