00:01
All right, hello, in this question we're told that we have this cost function and we're asked to find the average cost function for a bunch of different things.
00:07
Our average cost function, which is usually denoted as c bar, is just going to be our cost function divided by how many things we make.
00:14
So the cost of things divided by that number of things is going to give us our average cost of a thing.
00:20
So i'm going to have 2x minus 3 divided by 7x plus 2, all of that over x.
00:25
And i could write this x over 1 if i want, so this is going to be 1 over x here in order to get rid of that.
00:31
And so the denominator here is just going to be multiplied by an additional x.
00:35
So i'll have 7x squared plus 2x.
00:38
That's my average cost function there.
00:40
If i want to find the average cost for 45 units, as i'm asked in part a, i simply just plug in 45.
00:47
And if i do that, i'm going to get a value of 0 .00610, we'll say.
00:53
And that is going to be hundreds of dollars because we're told that the total cost in hundreds of dollars is given by the function c of x.
01:00
So this is going to be hundreds, a hundred dollars.
01:05
Part a asks for the cost of 45 units in just dollars per unit.
01:09
So i'm going to have to multiply this by a hundred.
01:11
If i do that, i'm going to get that it's going to be 0 .61 dollars, so 61 cents per unit...