The average cost per item to produce q items is given by a(q) = 0.01q 2

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The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q > 0.

(a) What is the total cost, C(q), of producing q goods?

(b) What is the minimum marginal cost? What is the practical interpretation of this result?
(c) At what production level is the average cost a minimum? What is the lowest average cost?
(d) Compute the marginal cost at q = 30. How does this relate to your answer to part (c)? Explain this relationship both analytically and in words.

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Applied Calculus

ISBN: 9781119275565

6th Edition

Authors: Deborah Hughes Hallett, Patti Frazer Lock, Andrew M. Gleason, Daniel E. Flath, Sheldon P. Gordon, David O. Lomen, David Lovelock, William G. McCallum, Brad G. Osgood, Andrew Pasquale

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