average cost is a(q) = c(q)/q = 3q + 50 - 18lnq + 120/q
da/dq = 3 - 18/q - 120/q^2
da/dq = 0 at q=10, so a(10) = 92-18ln10
a" > 0 so that is a minimum
During the Christmas season a promotional company purchases cheap red felt stockings, glues fake white fur and sequins onto them and packages them for distribution.
The total cost of producing q cases of stockings is given by
c = 3q^2 + 50q − 18qlnq + 120
Find the number of cases that should be processed in order to minimize the average cost per case. Determine (to two decimal places) this minimum average cost.
1 answer
1 answer