Math Problem Statement

Only answers

For the given cost function C(x) = 16900 + 400x + x^2, find: a) The cost at the production level 1400 b) The average cost at the production level 1400 c) The marginal cost at the production level 1400 d) The production level that will minimize the average cost e) The minimal average cost

Solution

Here are the answers for each part:

Given cost function: C(x)=16900+400x+x2C(x) = 16900 + 400x + x^2

a) Cost at production level 1400

C(1400)=16900+400×1400+14002=2393000C(1400) = 16900 + 400 \times 1400 + 1400^2 = 2393000

b) Average cost at production level 1400

Average Cost=C(x)x\text{Average Cost} = \frac{C(x)}{x} Average Cost at x=1400=23930001400=1709.28571709.29\text{Average Cost at } x = 1400 = \frac{2393000}{1400} = 1709.2857 \approx 1709.29

c) Marginal cost at production level 1400

The marginal cost is the derivative of C(x)C(x): C(x)=400+2xC'(x) = 400 + 2x C(1400)=400+2×1400=3200C'(1400) = 400 + 2 \times 1400 = 3200

d) Production level that minimizes average cost

To minimize the average cost, set C(x)=C(x)xC'(x) = \frac{C(x)}{x} and solve: x=200x = 200

e) Minimal average cost

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Math Problem Analysis

Mathematical Concepts

Cost Function Analysis
Average Cost
Marginal Cost
Optimization

Formulas

Cost Function: C(x) = 16900 + 400x + x^2
Average Cost: AC(x) = C(x)/x
Marginal Cost: MC(x) = dC(x)/dx

Theorems

Derivative for Marginal Cost
Optimization of Average Cost

Suitable Grade Level

Undergraduate