Question

The average cost function is given by AC=0.01x^2-30x^(1/2)+300+60x.Find the number of units for which marginal cost is minimum?​

Answer 1

Answer:

Given, AC=x+5+x36

(i) TC=(AC)x

=(x+5+x36).x

=x2+5x+36

MC=dxd(TC)

=dxd(x2+5x+36)

Ans. =2x+5

(ii) AC increases when dxd(AC)>0

dxd(x+5+x36)=0

1−x236>0

⇒x2−36>0

⇒(x+6)(x−6)>0

⇒x<−6,x>6

But x is +ve therefore AC increases when x>6.