A manufacturer estimates that when q thousand units of a particular commodity are produced each month, the total cost will be C(q) =0.4q 2 +3q+40 thousand dollars, and all q units can be sold at a price of p(q)= 22.2 - 1.2q dollars per unit. At what level is the average cost per unit minimized?
a)10 thousand
b)17.6 thousand
c)9 thousand
d)6 thousand
we have
the average cost,
for the minimum average cost,
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