SOLUTION: Hi, I'm having trouble solving the following word problem. I'd really appreciate any help you can offer. Thank you. A business has a cost for producing X units that is modeled

Question 115220: Hi, I'm having trouble solving the following word problem. I'd really appreciate any help you can offer. Thank you.
A business has a cost for producing X units that is modeled by the equation C=1000,000 + .9x.
The average cost would then be Cav=C/x
A) Find the average cost of producing 100 units, and 1,000,000 units (First create the average cost function)
B) What would be the average cost as X increases without bound?
Thanks so much for your help.
Lucy
Answer by ankor@dixie-net.com(12701) (Show Source):
You can put this solution on YOUR website!
I am assuming that 1000,000 actually means 100,000
:
A business has a cost for producing X units that is modeled by the equation C=100,000 + .9x.
The average cost would then be Cav=C/x
:
A) Find the average cost of producing 100 units, and 1,000,000 units (First create the average cost function)
:
Creating the average cost function, substitute 100,000 + .9x for c
Cav =
:
For producing 100 units:
:
Substitute 100 for x
Cav =
Cav =
Cav =
Cav = $1,000.90
:
:
For producing 1,000,000 units
Cav =
Cav =
Cav =
Cav = $1.00
;
:
B) What would be the average cost as X increases without bound?
The cost would approach $0 but never reach it.