Question

The cost, in dollars, to produce units is C(q)-5200 300 d. Find the marginal cost to produce the 400th unit. $ 30 per unit e. Find a formula for the average cost (a). 5200 a(9) 30 - (Type an expression using g as the variable) 9 1. Find the average cost of producing the 400th unit. $ 43 per unit g. Find lim ala) Tim (q)- 30 900 h. Interpret your answer to party. Choose the correct answer below. O A As production increases, average costs increase without bound. B. As production increases, average costs decrease toward O. c. As production increases, average costs get closer and closer to the variable costs por unit. The fixed costs are absorbed. OD. As production increases, average costs get closer and closer to fixed costs. 1. Which of these is the graph of the average costs aay? Select the best answer OA Al OB A Oc A Click to select your answer and then click Check Answer

Answer 1

Giver o 9=400 19=400 = 0+30 cost function is ((q) = 5200+309. d). Marginal cost at c'(a) [q=400 le marginal cost is $30/por unit e) Average cost acas= (Ca) 30+ 5200 q 9 f) Average cost of producing the 400th unit i.e a(400)= 30+ 5200 30t 13 =435 400 pie T$43 g lim a (q) = lim 30+ 5200 - 30 per unit. since limsus gooo 9 to a to cost are b)(C) As producnon increases, average costo get closer and to the variable cost unit. The fixed observed. 1.) Gruph of acas is a (9) A. Hence option (A.) is corrett answer, 30