K kljmom New member Joined Jul 10, 2005 Messages 1 Jul 10, 2005 #1 Please help me! Suppose c(x)= x^3 -24x +10000x is the cost of manufacturing x items. Find a production level that will minimize the average cost of making x items.
Please help me! Suppose c(x)= x^3 -24x +10000x is the cost of manufacturing x items. Find a production level that will minimize the average cost of making x items.
G Gene Senior Member Joined Oct 8, 2003 Messages 1,904 Jul 12, 2005 #2 Same answer as the other. d(x*c(x))/d(x) = 0?
pka Elite Member Joined Jan 29, 2005 Messages 11,978 Jul 13, 2005 #3 Actually average cost is C(x)/x, so solve d[C(x)/x]/dx =0. Also, surely it is -24x<SUP>2</SUP>.
G Gene Senior Member Joined Oct 8, 2003 Messages 1,904 Jul 13, 2005 #4 PKA got me again. I was maximizing profit instead of minimizing cost
pka Elite Member Joined Jan 29, 2005 Messages 11,978 Jul 13, 2005 #5 Average cost? This is a nice problem. From it we prove a theorem: Minimum average cost occurs where average cost equals marginal cost.
Average cost? This is a nice problem. From it we prove a theorem: Minimum average cost occurs where average cost equals marginal cost.
