The cost is c(x)=0.04×^2-8.504×+25302 find the production level that minimizes your cost of production and also give the daily cost at production level

Answer 1

C= 0.04x^2 - 8.504x + 25,302

C' = .08x - 8.504 = 0

x = 8.504/.08 = 106.3 = cost minimizing output level

C= 0.04(106.3)^2 - 8.504(106.3) + 25,302

= 451.9876 - 903.9752 + 25302 = $24,850.01 = minimum total cost

C/x = per unit cost = 24,850.01/106.3 = $233.77