The estimated cost to produce x items is given by the function: C(x)= 0.004x² + 5x + 6000 Determine the average cost and marginal cost of producing 2,000 items and calculate the level of output for which the average cost is the lowest and what that cost is.

The estimated cost to produce x items is given by the function: C(x)= 0.004x² + 5x + 6000 Determine the average cost and marginal cost of producing 2,000 items and calculate the level of output for which the average cost is the lowest and what that cost is.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 17SQ

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Question

The estimated cost to produce x items is given by the function:
C(x) = 0.004x² + 5x + 6000
Determine the average cost and marginal cost of producing 2,000 items and
calculate the level of output for which the average cost is the lowest and what that
cost is.

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Step 1: define marginal cost and average cost

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Step 2: calculate the average cost of producing 2000 units

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Step 3: calculate the marginal cost of producing 2000 units

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