Question

A manufacturer estimates that when q thousand units of a particular commodity are produced each month,...

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

Math   Calculus   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

we have

the average cost,

for the minimum average cost,

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. A tire manufacturer estimates that q thousand radial tires will be purchase by wholesalers when...
1. A tire manufacturer estimates that q thousand radial tires will be purchase by wholesalers when the price is D ( q ) = − 0.1 q 2 + 90 dollars per time and the same number of tires will be supplied when the price is S ( q ) = 0.2 q 2 + 50. a. Find the equilibrium price and the the quantity supplied and demanded at that price. b. Determine the consumers' and producers' surplus at the...
The demand for a particular commodity when sold at a price of p dollars is given...
The demand for a particular commodity when sold at a price of p dollars is given by the function D(p) = 4000e −0.02p . (a) Find the price elasticity of demand function and determine the values of p for which the demand is elastic, inelastic, and of unitary elasticity. (b) If the price is increased by 3% from $12, what is the approximate effect on demand? (c) Find the revenue R(p) obtained by selling q units at p dollars per...
The price p (dollars per unit) of a particular commodity is increasing at the rate p...
The price p (dollars per unit) of a particular commodity is increasing at the rate p ' (x) = (20/((x + 7)) with superscript (2)) , when x hundred units of the commodity are supplied to the market. The manufacturer supplies 300 units when the price is 3 $ per unit. What price corresponds to a supply of 1300 units?
If C(x) is the cost of producing x units of a commodity, then the average cost...
If C(x) is the cost of producing x units of a commodity, then the average cost per unit is a(x) = C(x)/x. Consider the C(x) given below. Round your answers to the nearest cent. C(x) = 54,000 + 90x + 4x3/2 (a) Find the total cost at a production level of 1000 units. .......................................$ (b) Find the average cost at a production level of 1000 units. ................................dollars per unit (c) Find the marginal cost at a production level of 1000...
A retailer sells a perishable commodity and each day he places an order for Q units....
A retailer sells a perishable commodity and each day he places an order for Q units. Each unit that is sold gives a profit of 60 cents and units not sold at the end of the day are discarded at a loss of 40 cents per unit. The demand, D, on any given day is uniformly distributed over [80,140]. How many units should the retailer order to maximize expected profit?
A manufacturer estimates that its product can be produced at a total cost of C(x) =...
A manufacturer estimates that its product can be produced at a total cost of C(x) = 45000 + 150x + x 3 dollars If the manufacturer sells the product for $4600 per unit, determine the level of production x, that will maximize the profit. Round your answer to the nearest tenth of a unit. Use calculus to support your answer. Box both your profit function and your final answer.
The market for a medicine is in equilibrium at 80 thousand units a month. Each one...
The market for a medicine is in equilibrium at 80 thousand units a month. Each one is sold for $500. Suppose the own price elasticity of demand for this medicine is -0.8 and the price elasticity of supply is 1.5. a. Compute the slope and intercept coefficients for the linear supply and demand equations. b. If the government imposed a per unit subsidy of $40, what would be the new equilibrium price and quantity of this medicine? c. Calculate and...
The demand for a certain commodity is D(x)  =  8000e−.08x units per month when the market...
The demand for a certain commodity is D(x)  =  8000e−.08x units per month when the market price is x dollars per unit. (a) At what rate is the consumer expenditure E(x) = xD(x) changing with respect to price x when the price is equal to $180 dollars? (b) At what price does consumer expenditure stop increasing and begin to decrease? (c) At what price does the rate of consumer expenditure begin to increase?
II. Solve the following problems a. The supply and demand equations for a certain product are:...
II. Solve the following problems a. The supply and demand equations for a certain product are: 3q - 200p + 1800= 0 3q + 100p - 1800= 0 Respectively, where p represents the price per unit in dollars and q the number of units sold per period. Find the equilibrium price. b. A manufacturer of children’s toys will break even at a sales volume of $200,000. Fixed costs are $40,000 and each unit of production sells for $5. Determine the...
Flexible Budgets A chair manufacturer has established the following flexible budget for the month Units produced...
Flexible Budgets A chair manufacturer has established the following flexible budget for the month Units produced and sold 1,000 1,500 2,000 Sales $ 10,000 $ 15,000 $ 20,000 Variable costs (5,000) (7,500) (10,000) Fixed cost (2,000) (2,000) (2,000) Profit $ 3,000 $ 5,500 $ 8,000 Required a. what is the sales price per chair? b. what is the expected profit if 1,600 chairs are made
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT