Calc

[kljmom]

Please help me!

Suppose c(x)= x^3 -24x +10000x is the cost of manufacturing x items. Find a production level that will minimize the average cost of making x items.

 

[Gene]

Same answer as the other.
d(x*c(x))/d(x) = 0?

 

[pka]

Actually average cost is C(x)/x, so solve d[C(x)/x]/dx =0.
Also, surely it is -24x<SUP>2</SUP>.

 

[Gene]

PKA got me again. I was maximizing profit instead of minimizing cost

 

[pka]

Average cost? This is a nice problem.
From it we prove a theorem: Minimum average cost occurs where average cost equals marginal cost.