A manufacturer incurs the following costs in producing \( x \) water ski vests in one day, for \( 0
Ask by Ramos Pope. in the United States
Mar 11,2025
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Let's dive into the calculations for this fun little economic exploration! (A) The average cost \( \overline{C}(x) \) per vest is given by dividing the total cost \( C(x) \) by the number of vests \( x \). We have: \[ \overline{C}(x) = \frac{C(x)}{x} = \frac{0.05x^2 + 10x + 405}{x} = 0.05x + 10 + \frac{405}{x} \] Thus, \[ \overline{C}(x) = 0.05x + 10 + \frac{405}{x} \] (B) To find the critical numbers, we first find the derivative of the average cost function: \[ \overline{C}'(x) = 0.05 - \frac{405}{x^2} \] Setting the derivative equal to zero to find critical numbers: \[ 0.05 - \frac{405}{x^2} = 0 \Rightarrow \frac{405}{x^2} = 0.05 \Rightarrow 405 = 0.05x^2 \Rightarrow x^2 = \frac{405}{0.05} = 8100 \Rightarrow x = 90 \] Thus, A. The critical number(s) is/are \( x = 90 \). Next, we determine the intervals for increasing and decreasing by testing values around the critical point. - For \( x < 90 \): Choose \( x = 80 \) \[ \overline{C}'(80) = 0.05 - \frac{405}{80^2} \approx 0.05 - 0.0634 < 0 \quad (\text{decreasing}) \] - For \( x > 90 \): Choose \( x = 100 \) \[ \overline{C}'(100) = 0.05 - \frac{405}{100^2} \approx 0.05 - 0.0405 > 0 \quad (\text{increasing}) \] Now we can summarize the intervals: The average cost per vest is decreasing on the interval(s) \( (0, 90) \). The average cost per vest is increasing on the interval(s) \( (90, 200) \).