If the total cost function is c(x)=1/2x^2-5x+500, find the production level that will minimize aveerage cost?

take the derivative of the function, and you get:


c'(x)=x-5





Solve the above to find where c'(x)=0, and you get x=5.





So, the solution is x=5. This is the value of x that gives the minimum cost for c(x).





Hope this helps.

strawberry