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Please show all work so I can better understand:
1. Suppose that the cost of producing x units is given by C(c) = 10,000 + 2X + 0.04X2
a) Find the average cost function, A(x).
b) How many units must be made to minimize the average cost per unit? Verify that this is a minimum using the 2nd derivative test.
c) What is the minimum average cost?
d) Find the marginal cost for the output determined in b).
e) Is the marginal cost increasing or decreasing at the quantity found in b).
f) If the product sells for $50 per unit, is it possible for the firm to earn a profit?
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