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Homework answers / question archive / The marginal average cost function is C(x)=−100x2C(x)=−100x2 a) Find and interpret the marginal average cost at sales level at 2500 hotdogs and 4500 hotdogs interpret these results to choose the correct answer
The marginal average cost function is
C(x)=−100x2C(x)=−100x2
a) Find and interpret the marginal average cost at sales level at 2500 hotdogs and 4500 hotdogs
interpret these results to choose the correct answer.
The marginal average cost when 2500 and 4500 hotdogs are being made can be calculated by substituting the value of x as 2500 and 4500 in the marginal average cost function, respectively.
C(2500)=−10025002=−1.6∗10−5C(2500)=−10025002=−1.6∗10−5
Thus, the average cost reduces by a very small amount $1.6∗10−5$1.6∗10−5 when the 2501st unit produced.
C(4500)=−10045002=−4.938272∗10−6C(4500)=−10045002=−4.938272∗10−6
Thus, the average cost reduces by a very small amount $4.938272∗10−6$4.938272∗10−6 when the 4501st unit is produced.
