Homework answers / question archive / If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x

If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x

Accounting

Share With

If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost function C(x) given below:

C(x) = 54,000 + 140x + 4x3/2

(a) Find the production level that will minimize the average cost. (Round your answer to the nearest whole number.)

(b) What is the minimum average cost? (Round your answer to the nearest dollar.)