Demand Function, Cost Function
Response to the following problems:
1. When x=500 units, is the demand elastic, inelastic, or unit elastic? The demand function is P(x) = 100-x/400 in dollars
2. The cost function to produce x items is given by: C(x)=1/9x^2 - 2x + 100 in dollars. Determine the production level of x that will minimize the average cost for this product. What is the average cost at this production level? What is the cost at this production level?