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

Homework Answers

Answer #1

we have

the average cost,

for the minimum average cost,

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