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has determined that the marginal.pdf

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8. A manufacturer has determined that the marginal-cost function is dc dq 0.003q2 - 0.4q + 40, where q is the number of units produced. If marginal cost is $27.50 when q = 50 and fixed costs are $50 ... 00, what is the average cost of producing 100 units? Answer & Explanation Solved by verified expert Rated Helpful The solution is done showing all steps with calculations and required explanations. Hope you can understand and appreciate the work. Step-by-step explanation Given that, dC/dq = 0.003q2 - 0.4q + 40, q is the number of units produced. C(0) = fixed costs = $5000 C(q) = ∫[0.003q2 - 0.4q +40]dq = 0.001q3 - 0.2q2 + 40q + K Since C(0) = 5000, we have K = 5000 So, C(q) = 0.001q3 - 0.2q2 + 40q + 5000Average cost = C(q)/q When q = 100, Average cost = C(100)/100 = 8000/100 = $ 80 / unit (Answer) [Show More]

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