tudent/PlayerH kaspx?homeworkld-48767903 50 http:/O MATH 209 ?? Maria M Homework

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tudent/PlayerH kaspx?homeworkld-48767903 50 http:/O MATH 209 ?? Maria M Homework: Assignment 3 Lab M score: 0 of 1 pt 19 of 23 (13 complete) Cou Bus Econ 2.7.39 The total cost (in dollars) of manufacturing x auto body frames is C(x) 30,000+ 400x (A) Find the average cost per unit if 500 frames are produced (B) Find the marginal average cost at a production level of 500 units mework izzes & Tests (C) Use the results from parts (A) and (8) to estimate the average cost per frame if 501 frames are produced udy Plan(A) If 500 frames are produced, the average cost is S per frame adebook ext apter Conten

Explanation / Answer

A.

C = 30000 + 400X

At 500 level of output

Average cost = (1/X)*30000 + 400

Average cost = 30000/500 + 400

Average cost = $460

B.

Average cost = (1/X)*30000 + 400 ------------- (1)

The differentiation of eq. 1 w.r.t. X, will give marginal average cost (MAC)

MAC = -30000/X^2

At 500 units,

MAC = -30000/500^2

MAC = -$.12

C.

On the basis of result in A and B,

Average cost for the 501 frames = 460-.12

Average cost for the 501 frames = $459.88

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