Respuesta :
Answer:
a)Average cost function =[tex]\bar{C(x)}=\frac{1000+0.1x}{x}[/tex]
Marginal cost function =[tex]C'x=0.1[/tex]
b) [tex]\bar{C(2000)}=0.6[/tex]
[tex]C'(2000)=0.1[/tex]
c)[tex]\bar{C(2000)}=0.6[/tex] is the average cost to produce first 2000 items
C'(2000)=0.1 is the marginal cost to produce 2001 th item
Step-by-step explanation:
Cost function: [tex]C(x) = 1000 + 0.1x[/tex]
a)Find the average cost and marginal cost functions.
Average cost function =[tex]\bar{C(x)}=\frac{C(x)}{x}[/tex]
Average cost function =[tex]\bar{C(x)}=\frac{1000+0.1x}{x}[/tex]
Marginal cost function =[tex]C'x=0.1[/tex]
b) Determine the average and marginal cost when x = a.
a = 2000
Average cost function =[tex]\bar{C(x)}=\frac{1000+0.1x}{x}=\frac{1000+0.1a}{a}=\frac{1000+0.1(2000)}{2000}=0.6[/tex]
So, [tex]\bar{C(2000)}=0.6[/tex]
Marginal cost function =[tex]C'(2000)=0.1[/tex]
c)Interpret the values obtained in part (b).
[tex]\bar{C(2000)}=0.6[/tex] is the average cost to produce first 2000 items
C'(2000)=0.1 is the marginal cost to produce 2001 th item
