Minimizing production costs the daily total cost in dollars

Question

Question: MINIMIZING PRODUCTION COSTS The daily total cost (in dollars) incurred by Trappee and Sons for producing x cases of TexaPep hot sauce is given by the function

C(x) = 0.000002x³ + 5x + 400

Using this function, answer the questions posed in Exercise.

Exercise: MINIMIZING PRODUCTION COSTS The total monthly cost (in dollars) incurred by Cannon Precision Instruments for manufacturing x units of the model M1 camera is given by the function

C(x) = 0.0025x² + 80x + 10,000

a. Find the average cost function C¯.

b. Find the level of production that results in the smallest average production cost.

c. Find the level of production for which the average cost is equal to the marginal cost.

d. Compare the result of part (c) with that of part (b).