Consider the following cost function.
a. Find the average cost and marginal cost functions.
b. Determine the average and marginal cost when x = a.
c. Interpret the values obtained in part (b).
C(x) = 1700 + 0.4x, 0 ≤ x ≤ 5000, a = 2000
a. The average cost function is C̄(x) =
The marginal cost function is C'(x) =
b. The average cost when x = 2000 is $.
(Round to two decimal places as needed.)
The marginal cost when x = 2000 is $ per item.
(Round to two decimal places as needed.)
c. The average cost per item is about $ when items are produced.
(Round to two decimal places as needed.)
The cost of producing the 2001st item is $.
(Round to two decimal places as needed.)