Thomas R. answered • 04/30/18

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Er, this doesn't qualify as trig question. I can still answer it, though, as can you.

The average cost function is:

C-ave = Total cost / number of items

In your case, that would be:

C-ave = (145 + 0.75X) / X = 145/x + 0.75

A)

If we plug in the $1 for C-ave, we get:

1 = 145 / X + 0.75

-0.75 - 0.75

0.25 = 145 / X

You can rewrite this as:

1 = 145

4 X

Cross-multiply and you get:

X = 580

B) as X increases, the supply cost falls lower while 0.75 stays the same, reducing the average cost more and more.

C) At extremely huge values, the 145 all but disappears into a tiny decimal, tiptoeing toward zero.

That means you slowly approach 0.75 as an answer.