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OverLord2011 [107]
3 years ago
15

When no more than 110 units are produced, the cost of producing y units is given by C(x).

Mathematics
1 answer:
Maslowich3 years ago
6 0

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.

Find out more at: brainly.com/question/20346871

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