College

A cost function is given:

\[ c(x) = 3700 + 5x - 0.04x^2 + 0.0003x^3 \]

(a) Find the average cost and marginal cost functions.

Answer :

x=quantity produced or sold.
Average cost = c(x)/x = (3700+5x-0.04x^2)/x = 3700/x+5-0.04x

Marginal cost = c'(x) = 5-0.08x

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