00:01
In this question, we say that a company can produce lcd digital alarm clocks at a cost of $4 while fixed costs are $100.
00:10
Therefore, the company's cost function is c of x, which is 4x plus 100.
00:16
In part a, i want to find the average cost function, which is defined to be c of x divided by x.
00:25
So we are getting c of x, which is 4x plus 100, and we are dividing that by x.
00:34
Now here i have what's called a monomial denominator.
00:37
So i'm going to divide that into each term of the numerator.
00:43
That's giving us 4x over x plus 100 over x, and that first term simplifies to just 4.
00:53
So then i'm getting 4 plus 100 over x.
00:57
So 4 plus 100 over x.
01:01
That is my average cost function.
01:04
Now in b, i want to know the marginal average cost function.
01:08
So to get from my average cost to my marginal average cost, all i do is take my derivative.
01:16
So if my average cost function is 4 plus 100x, that can be rewritten as 4 plus 100x being raised to the negative first power...