QuestionFind the average cost per item given the cost function for producing 100 items. What is the average cost?
Studdy Solution
STEP 1
Assumptions1. The cost function is . The number of items produced is100
STEP 2
The average cost per item is calculated by dividing the total cost by the number of items. The formula is
STEP 3
Now, plug in the given values for the cost function and the number of items into the formula to calculate the average cost.
STEP 4
First, we need to calculate the total cost when100 items are produced. We do this by substituting into the cost function .
STEP 5
Calculate the total cost when100 items are produced.
STEP 6
Now that we have the total cost, we can calculate the average cost per item by dividing the total cost by the number of items.
STEP 7
Calculate the average cost per item.
The average cost per item is $32.
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