Answer:
Average cost function is [tex]95+\frac{230000}{x}[/tex]
the marginal average cost function [tex]\frac{230000}{x^2}[/tex]
C(x) approaches infinity when x is very large
Step-by-step explanation:
the total cost for making x units of their Senior Executive model is represented by the following function
[tex]C(x) = 95x + 230000[/tex]
Average cost is C(x) divide by x
Average cost =[tex]\frac{C(x)}{x} =\frac{95x + 230000}{x}[/tex]
Average cost function is [tex]95+\frac{230000}{x}[/tex]
To find marginal average cost function , we take derivative
Derivative of average cost function is
the marginal average cost function [tex]\frac{230000}{x^2}[/tex]
x is very large means x tends to infinity
Find out the value of C(x) when x approaches infinity
[tex]C(x) = 95x + 230000[/tex]
Plug in infinity for x, c(x) approaches infinity
C(x) approaches infinity when x is very large