For the cost function () = 2 − 5 + 100, the average cost of producing 20 items is
_________.
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Now to find AC increasing, we will differentiate the function of average cost and see at critical points.
dx
d(AC)
=2−
x
2
50
=0⇒x=−5,5
Now if we plot it on number line we can see that functions value increases from (−∞,−5),(5,∞) and decreases from (−5,5).
Hence range of values of the output x, for which AC is increasing is (−∞,−5)∪(5,∞)
Step-by-step explanation:
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