The cost to manufacture x computers per day is modeled by the following equation

Question

The cost to manufacture x computers per day is modeled by the following equation

The cost to manufacture x computers per day is modeled by the following equation C(x) = 20,000 + 25x + x^2/20,000 The average cost C bar (x) = C(x)/x is defined to be the total cost divided by the quantity produced. How fast is C bar changing if the current production rate is 2000 computers per day and is increasing at the rate of 200 units per day Increasing by $1.01 per day Decreasing by $1.01 per day Increasing by $125.01 per day Decreasing by $125.01 per day None of the above

Explanation / Answer

The cost for 2000 computers is $70,200, that is on an average of the total cost is $35.10 per unit.

The cost for 2200 computers is $75,242, that is on an average of $34.20 per unit.

Now, The difference is a decrease of $0.90. That is approximately, Decreasing by $1.01 per day

Therefore, the correct option is ( B )

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