Applications of Derivative Word Problems: ave. costs, etc.

[bogsd]

The total monthly cost(in dollars) incurred by Canon Precision Intruments for manufacturing x units of the model MI camera is given by the function

C(x)= 0.0025X^2 + 80X +10,000

Find the average cost.
find the level of production that results in the smallest average cost.
Find the level ofproduction for which the average cost is equal to the marginal cost.
Provide a comparison of the last two answers.

 

[stapel]

The total monthly cost(in dollars) incurred by Canon Precision Intruments for manufacturing x units of the model MI camera is given by the function C(x)= 0.0025X^2 + 80X +10,000...

What have you tried so far? How far did you get? Where are you stuck?

Please be complete. Thank you!

Eliz.

 

[galactus]

The average cost is just \(\displaystyle \frac{C(x)}{x}\). See why?. The cost divided by the number of units.

Marginal cost is the derivative of C(x).

To find when they're the same, find C(x)/x and C'(x) set them equal and solve for x.