A company has found that the marginal cost (in thousands of dollars) to produce x central air

Fantastic news! We've Found the answer you've been seeking!

Question:

A company has found that the marginal cost (in thousands of dollars) to produce x central air conditioning units is

C(x)=60x/6x^2+e, where x is the number of units produced.

(a) Find the cost function, given that the company incurs a fixed cost of $12,000 even if no units are built.

(b) The company will seek a new source of investment income if the cost is more than $17,000 to produce 5 units. Should they seek this new source?

Related Book For answer-question

Introduction to Operations Research

ISBN: 978-1259162985

10th edition

Authors: Frederick S. Hillier, Gerald J. Lieberman

See More Books

Posted Date: May 02, 2024 04:40 PM

See More Questions

A company has found that the marginal cost (in thousands of dollars) to produce x central air conditioning units is C(x)=60x/6x^2+ e , where x is the number of units produced. (a) Find the cost...
The Evolution of the Fashion Industry: Consider the market for clothes and suppose there exist 100 different styles that can be produced and can be arranged (and equally spaced) on a circle. Among...
Complete the following probability distribution if P(6) equals two-thirds of P(4). Then find Î¼, Ï 2 , and Ï for the distribution. 2 0.23 1 4 9. 6. P(X) ? 0.18 0.015
A $7760 investment earning 6 1/4% matured at $8083.33. What was the term (in months) of the investment?
Barto Company provides this information for die month ended October 31, 2017: sales on credit $300,000, cash sales $150,000, sales discounts $5,000, and sales returns and allowances $19,000. Prepare...
What are Lean SE Principles intended to accomplish?
For each of the following processes, state whether OLTP or OLAP is appropriate and why, a. An order entry system that retrieves customer information, invoice information, and inventory information...
Sam owns a farm which his family has run for four generations. The state selects Sam's farm to use as a retreat to sooth the nerves of its lawmakers. The state claims Sam's land under eminent domain....
A polling company is interested for the monthly household income in urban and rural areas. For this purpose, the company randomly selects 10 houesholds from urban areas and 10 households from rural...
As you can see by clicking on the above link, the going yield-to-maturity on a 10 year US Treasury bond is about 4.33% (as of Monday morning). Does this mean that an investor who buys this bond today...
The following two tables give information on treasury prices and the holdings in a portfolio managed by Bob Smith Term Structure Maturity Type Par Coupon Rate Treasury Price B spread on Treasury...
A 3-year term insurance policy on (50) provides a benefit of 100,000 upon death or a benefit of 50,000 upon diagnosis of disability. The policy will only pay one benefit. The benefit in either case...
Mountain Valley Enterprises is expected to have next year's free cash flow of $14 million. FCF is expected to grow at 5% per year into foreseeable future. Mountain Valley's cost of equity capital is...
S=105; X=100; rc=.02; T=60 days; standard deviation of daily returns = .012; Assume 365 calendar days in a year and 255 trading days in a year. Assume N(d1) =0.76and N(d2) = 0.74 (irrespective of...
Why should the FED not simply increase the supply of money of the magnitude necessary to pay down the $16 trillion debt that the government accrued, and what are the potential consequences of such...
Ball bearings are widely used in industrial applications. You work for an industrial food machinery manufacturer and your role is to design the driveshaft assembly on a new type of equipment that...
True or False. The phase angle of the response depends on the system parameters $m, c, k$, and $\omega$.
True or False. The phase angle of the response depends on the amplitude of the forcing function.
True or False. The $Q$-factor can be used to estimate the damping in a system.

A company has found that the marginal cost (in thousands of dollars) to produce x central air

Question:

Expert Answer:

a To find the cost function given the fixed cost we start with the given marginal cost function Cx 6... View the full answer

Introduction to Operations Research

Students also viewed these mathematics questions