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Problem

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Textbook Expert
Textbook ExpertVerified Tutor
19 Nov 2021

Given information

1.   is the cost of producing   units of a commodity.

2. Average cost per unit is .

3. , in dollars,

(i) production level of 1000 units. 

(ii) minimization of the average cost is required.

 

Step-by-step explanation

Step 1.

Cost for a production level of 1,000 units:

   

Average cost is given by

 

 

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