Show transcribed image text Calculator permitted You may use the textbook and any other book You...

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Show transcribed image text Calculator permitted You may use the textbook and any other book You must list all references. The Apex Widget Company has determined that its marginal cost function is C 0 ( r ) = 0.5x + 5, where x represents the number of boxes of widgets which can be produced each week and C is in dollars. The cost of producing 200 boxes of widgets is $22,500. Also, if they charge $50 per box, they will sell 350 boxes and if they charge $75 per box they will sell 300 boxes. Assume this demand equation is linear. Find: (Assume that a box of widgets can be opened and divided before being shipped to a customer and that there are 120 widgets in a box.) Suppose that boxes of widget cannot be opened and divided before being shipped to customers. Which of your answers to the questions in Part 1. will be changed ? Explain how. Find what the new answers to these questions will be. Suppose that plant capacity is such that not more than 200 boxes of widgets can be produced each week. Which of your answers to the questions in Part 1. will be changed ? Explain how. Fintl what the new answers to these questions will be.

Robert · Accepted Answer

(e) the (total) cost function   
we have ,  
on integrating this equation we get
   We have given , C(200) = 22,500
                Hence, the   (total) cost function
(f) the average cost function. 
         average cost function. would be
(g) The production level (number of boxes) which yields minimum average cost    
      We have average cost
           On differentiating this wrt x , we get
           On solving this ,

Show transcribed image text Calculator permitted You may use the textbook and any other book You must list all references. The Apex Widget Company has determined that its marginal cost function is C 0...

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