2a. Find the production level that minimizes the average cost per unit for the cost function C = 400+0.05x+0.0025x², whe

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2a Find The Production Level That Minimizes The Average Cost Per Unit For The Cost Function C 400 0 05x 0 0025x Whe 1 (180.45 KiB) Viewed 11 times

2a. Find the production level that minimizes the average cost per unit for the cost function C = 400+0.05x+0.0025x², where C is the cost (in dollars) of producing x units of a product. What is the minimum average cost? Ans: prod. level = 400 units, min. cost = $2.05 2b. A commodity has a demand function modeled by p = 80 – 0.2x and a total cost function modeled by C = 30x + 40, where x is the number of units. Find the production level that maximizes the profit. What is the maximum profit? When the profit is maximized, what is price per unit? When the profit is maximized, what is the average cost per unit. Ans: prod. Level = 125 units, max. profit = $3085, price per unit = $55, and aver. Cost = $30.32 2c. The profit P (in dollars) made by a company from selling x tablet computers can be modeled x² by P = 1.64x - - 2500. Find the number of units sold that will yield a maximum 15,000 profit. What is the maximum profit? Ans: # of units = 12,300, Max profit = $7,586