Average Cost: dazed and confused

roxstar1

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Oct 25, 2005
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A manufacturer has determined that the total cost C of operating a factory is

C = 0.5x^2 + 15x + 5000

where x is the number of units produced. At what level of production will the average cost per unit be minimized? (the average cost per unit is C/x)
 
If the average cost is C/x, then divide 0.5x<sup>2</sup> + 15x + 5000 by x, and simplify. Then, to minimize this average cost, take the derivative, set it equal to zero, and solve.

If you get stuck, please reply showing how far you have gotten. Thank you.

Eliz.
 
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