​Average Costs

question 82

Multiple Choice

​Average costs.Suppose the average costs of a mining operation depend on the number of machines used,and average costs,in dollars,are given by , ,where x is the number of machines used.How many machines give minimum average costs? ​

• A) ​Using 14 machines gives the minimum average costs.
• B) ​Using zero machines gives the minimum average costs.
• C) ​Using 24 machines gives the minimum average costs.
• D) ​Using 28 machines gives the minimum average costs.
• E) ​Using 33 machines gives the minimum average costs.

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Definitions:

Modified Internal Rate

An adjusted version of the internal rate of return (IRR) calculation that takes into account changes in the cost of capital or cash flow pattern.

Reinvestment Problem

The challenge of effectively reinvesting earnings or capital gains to achieve additional growth or income.

Multiple Solutions

Situations where more than one answer or approach can satisfy the conditions of a problem.

MIRR

Modified Internal Rate of Return, a financial measure used to evaluate the attractiveness of investments, taking into account the cost of capital and the reinvestment rate.