The Total Cost Function of a Firm is C = X 2 + 75 X + 1600 for Output X. Find the Output (X) for Which Average Cost is Minimum. is C a = C M at this Output? - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Mathematics and Statistics
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The total cost function of a firm is `C = x^2 + 75x + 1600` for output x. Find the output (x) for which average
cost is minimum. Is `C_A = C_M` at this output?
Given cost function
`C(x) = x^2 + 75x + 1600`
Average `bar C (x)=(C(x))/x`
For minimum average cost `barC (x)=0`
∴Minimum average cost=`barC(x)=40+75+1600/40=155`
Now we find marginal cost i.e.,
= 2x + 75 ...(1)
∴ put x=40 in eq (1)
`C_A=C_m for x=40`
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Solution The Total Cost Function of a Firm is C = X 2 + 75 X + 1600 for Output X. Find the Output (X) for Which Average Cost is Minimum. is C a = C M at this Output? Concept: Maxima and Minima.