Problem

Assume that it costs a company approximately \[ C(x)=676,000+160 x+0.001 x^{2} \] units What is the resulting average cost of a device? s How does the average cost compare with the marginal cost at the optimal production level? Find how much they differ. \[ \$ \]

Solution

Step 1 :The cost function for the company is given by \(C(x)=676,000+160 x+0.001 x^{2}\).

Step 2 :The average cost of a device is calculated by dividing the total cost by the number of units produced. So, the average cost \(A(x)\) can be calculated as: \(A(x) = \frac{C(x)}{x}\).

Step 3 :Substituting the given cost function into this equation, we get the average cost function as: \(A(x) = \frac{0.001x^{2} + 160x + 676000}{x}\).

Step 4 :We can simplify this function by dividing each term by x, resulting in the simplified average cost function: \(A(x) = 0.001x + 160 + \frac{676000}{x}\).

Step 5 :\(\boxed{A(x) = 0.001x + 160 + \frac{676000}{x}}\) is the final answer, representing the average cost of producing x units.

From Solvely APP
Source: https://solvelyapp.com/problems/20812/

Get free Solvely APP to solve your own problems!

solvely Solvely
Download