The total cost (in dollars) of manufacturing x auto body frames is C(x) = 60,000
ID: 3285720 • Letter: T
Question
The total cost (in dollars) of manufacturing x auto body frames is C(x) = 60,000 + 900x. Find the average cost per unit if 400 frames are produced. Find the marginal average cost at a production level of 400 units. Use the results from parts (A) and (B) to estimate the average cost per frame if 401 frames are produced. If 400 frames are produced, the average cost is $ 1050 per frame. The marginal average cost at a production level of 400 units is $ per frame. (Round to the nearest cent as needed.)Explanation / Answer
= -60000/x^2 = -60000/400^2 = -0.375
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