Determine the average cost, CaveCave, of producing the given number of calculators. We must take note that the average cost is acquired by taking the cost, C(n)C(n), and then divide it by the number of calculators, nn, or Cave=C(n)nCave=C(n)n

We are asked to find the average cost of producing n = 100 calculators. We proceed with the solution.

Cave=C(n)n=C(100)100=$500100=$5/calculatorCave=C(n)n=C(100)100=$500100=$5/calculator

Cost Function:

The cost function models the total cost of producing a certain number of goods. From this, we can derive the average cost by dividing the total cost by the number of goods that were produced. Moreover, the marginal cost reflects the change in the cost upon the change in the number of goods to be produced.