Solve the Problem $c ( x ) = x ^ { 3 } - 22 x ^ { 2 } + 20,000 x$

question 179

Multiple Choice

Solve the problem.
-Suppose $c ( x ) = x ^ { 3 } - 22 x ^ { 2 } + 20,000 x$ is the cost of manufacturing $x$ items. Find a production level that will minimize the average cost of making $x$ items.

• A) 13 items
• B) 11 items
• C) 10 items
• D) 12 items

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Definitions:

Option Clearing Corporation

An organization that facilitates the clearing and settlement of options contracts, ensuring their performance.

Stock Options

Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a specified price before a specified date.

Break-Even Price

The price level at which an investment must reach for an investor to recover their initial investment without making a profit or incurring a loss.

Call Option

A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified price within a specific time period.