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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

c(x)=

 

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)

 Mar 10, 2020
 #1
avatar+21725 
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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.....

 Mar 10, 2020

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