Byrd Harmon
05/03/2024 · Primary School
Suppose that \( c(x)=3 x^{3}-18 x^{2}+24,000 x \) is the cost of manufacturing \( x \) items. Find a production level that will minimize the average cost of making \( x \) items.
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Step-by-step Solution
To find the production level that minimizes the average cost of making \( x \) items, we first need to determine the average cost function, \( A(x) \). The average cost is given by the total cost divided by the number of items produced:
\[
A(x) = \frac{c(x)}{x} = \frac{3x^3 - 18x^2 + 24000x}{x}
\]
For \( x > 0 \), we can simplify this expression:
\[
A(x) = 3x^2 - 18x + 24000
\]
Next, we need to find the critical points of \( A(x) \) by taking its derivative and setting it to zero. The derivative \( A'(x) \) is:
\[
A'(x) = \frac{d}{dx}(3x^2 - 18x + 24000) = 6x - 18
\]
Setting the derivative equal to zero to find critical points:
\[
6x - 18 = 0
\]
Solving for \( x \):
\[
6x = 18 \\
x = 3
\]
To determine whether this critical point is a minimum, we can check the second derivative \( A''(x) \):
\[
A''(x) = \frac{d^2}{dx^2}(3x^2 - 18x + 24000) = 6
\]
Since \( A''(x) = 6 > 0 \), the function \( A(x) \) is concave up at \( x = 3 \), indicating that this point is indeed a minimum.
Thus, the production level that minimizes the average cost of making \( x \) items is:
\[
\boxed{3}
\]
Quick Answer
The production level that minimizes the average cost is 3 items.
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