a company is planning to manufacture mountain bikes. The fixed monthly cost will be
$ 200,000 and it will cost $300 to produce each bicycle.
A. Write the cost function, C of producing X mountain bikes per month
B. Write the average cost function C, of producing x mountain bikes per month.
C. Find and interpret C(500), C(2000) and C(4000)
Cost will be fixed costs and costs per unit * units
c(x) == 200 000 + 300x
average will be c(x) /x C = ( 200 000 + 300x )/x = 200 000/x + 300
Plug in 500 and 2000 and 4000 into C to find the average cost will go down as the number of bikes produced is increased.....