The average cost function

Reference no: EM1315930

Question: Biologists want to set up a station to test alligators in the lake for West Nile Virus. Assume that the costs for such a station are $2,500 for setup costs and $3.00 to administer each test.

[A] How many animals should be tested for the average cost to be $5.00 per animal?
[B] As the number of animals tested increases, what happens to the average cost to test the animals? Would the average cost ever fall below $3.00?

Reference no: EM1315930

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