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Manufactures and sells rucksack charms. her total dollar cost to make q (thousands) of pendants is given by C(q) =q _ 24q2+ 600q. Find the quantity (in thousands) that minimizes the average cost of her to make a pendant.
Sum fixed and variable costs to get the cost function. 3) A firm's profit is equal to the income received by the firm minus the expenses it has incurred. Subtract cost from revenue to get the profit function.
The average cost function is A(x)=C(x)x A ( x ) = C ( x ) x so x>0. Dividing the total cost by the number of units produced gives the average cost per unit. can be
Average Cost (AC), also known as Total Average Cost (ATC), is the average cost per unit of production. To do this, divide the total cost (TC) by the quantity the firm produces (Q).
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