The question asks,
The cost of producing x units of a product is given by
$C(x)=800+80x−80ln(x)$, $x≥1$.
Find the minimum average cost.
I keep getting $\$880$ as the minimum average cost but it isn't the right answer. Can anyone explain why?
The question asks,
The cost of producing x units of a product is given by
$C(x)=800+80x−80ln(x)$, $x≥1$.
Find the minimum average cost.
I keep getting $\$880$ as the minimum average cost but it isn't the right answer. Can anyone explain why?
$$C(x)=800+80x−80ln(x)$$
$$ \bar C =C(x)/x=800/x+80−80ln(x)/x$$
$$ \bar C' =-800/(x^2)−80(1-ln(x))/(x^2)$$
$$ \bar C' = 0 \implies -800−80(1-ln(x))=0$$
Solve for $x$ and evaluate your average cost at $x$