Suppose that a software company produces CDs (computer disks) at a cost of $4 each, and fixed costs are $50. The cost function, the total cost of producing x disks, will then be C(x) = 4x + 50, and the average cost per unit will be the total cost divided by the number of units. 4x + 50 AC(x) = (a) Find lim AC(x), which the unit or marginal cost. lim AC(x) = (b) Sketch the graph of AC(x), showing the horizontal asymptote. [Note: Your graph should be an illustration of the general business principle for linear cost functions: In the long run, average cost approaches marginal cost.]

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