Explanation Given information: From exercise 3, the total cost function is, C ( x ) = 2000 + 2 x − 0.0001 x 2 ( 0 ≤ x ≤ 6000 ) Formula used: The average cost of the function is, C ¯ ( x ) = C ( x ) x The marginal average cost function is, C ′ ¯ ( x ) = d d x C ¯ ( x ) Where, C ( x ) is the total cost function. C ¯ ( x ) is the average cost function. C ¯ ′ ( x ) is the marginal average cost function. x is the number of production units. Calculation: The average cost function is calculated as follows, C ¯ ( x ) = C ( x ) x Substitute 2000 + 2 x − 0

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

10th Edition

ISBN: 9781305657861

Author: Soo T. Tan

Publisher: Cengage Learning

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Question

Chapter 3.4, Problem 7E

To determine

The average cost function C¯ and the marginal average cost function C′¯ .

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Chapter 3 Solutions

Applied Calculus for the Managerial, Life, and Social Sciences (MindTap Course List)

Ch. 3.1 - State the following rules of differentiation in...Ch. 3.1 - Prob. 2CQ Ch. 3.1 - Prob. 3CQ Ch. 3.1 - Prob. 4CQ Ch. 3.1 - Prob. 1E Ch. 3.1 - Prob. 2E Ch. 3.1 - Prob. 3E Ch. 3.1 - Prob. 4E Ch. 3.1 - Prob. 5E Ch. 3.1 - Prob. 6E

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The average cost function C ¯ and the marginal average cost function C ′ ¯ .

Solution Summary: The author calculates the average cost function stackrel C(x)=

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The average cost function C¯ and the marginal average cost function C′¯ .

Chapter 3 Solutions