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Answer:
<em>The minimum average cost is $2.80 when 163 players are built</em>
Step-by-step explanation:
<u>Average Cost Function</u>
<em>We'll assume the given function as the total cost to produce x players, and NOT the average cost since that is a different definition, as shown below.</em>
The cost C to produce x DVD/Blu- ray players is given by the equation
The Average Cost function is defined as
To find the extreme value of the average cost, we must take the first derivative of the function
Equating to 0
Solving for x
The second derivative is
For x=163 the second derivative is positive, thus x=163 is a minimum value. Let's compute the minimum average cost
The minimum average cost is $2.80
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