Find the average cost and the marginal average cost function

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Reference no: EM131011272

Cost of Producing DVDs The total weekly cost in dollars incurred by Herald Media Corp. in producing x DVDs is given by the total cost function

C(x) = 2500 + 2.2x (0 ≤ x ≤ 8000)

a. What is the marginal cost when x = 1000 and 2000?

b. Find the average cost function C‾ and the marginal average cost function C‾'.

c. Using the results from part (b), show that the average cost incurred by Herald in producing a DVD approaches $2.20/disc when the level of production is high enough.

Reference no: EM131011272

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