The total cost (in dollars) of manufacturing x auto body frames is C(x) = 50,000

Question

The total cost (in dollars) of manufacturing x auto body frames is C(x) = 50,000 + 900x. Find the average cost per unit if 250 frames are produced. Find the marginal average cost at a production level of 250 units. Use the results from parts (A) and (B) to estimate the average cost per frame if 251 frames are produced. If 250 frames are produced, the average cost is per frame. The marginal average cost at a production level of 250 units is per frame. (Round to the nearest cent as needed.) Using the results from parts (A) and (B), the estimate of the average cost per frame if 251 frames are produced is $ (Round to the nearest cent as needed.)

Explanation / Answer

a) 1100 per frame b)c'(x) will give marginal cost = 900 c) 1099.2 per frame

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