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I need to solve this problem in my exam:
Suppose that the dollar cost of producing x radios is c(x) = 400 + 20x - 0.2x^2. Find the average cost per radio of producing the first 35 radios. ...?

Respuesta :

The solution to the problem is as follows:


Average cost is c(x)/x.
c(35) = 400 + 20(35) - 0.2(35)^2 = $855.
Then, the average cost is $855/35 = $24.43/radio


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