Assume That the Total Daily Cost, in Dollars, of Producing

question 56

Multiple Choice

Assume that the total daily cost, in dollars, of producing plastic rafts for swimming pools is given by where x is the number of rafts produced per day, then the average cost per raft produced id given by , for . Find the level of production that minimizes average cost. ​​

• A) 220 rafts per day
• B) 110 rafts per day
• C) 63 rafts per day
• D) 6,050 rafts per day
• E) 55 rafts per day

---

Definitions:

Average Variable Costs

The total variable costs (e.g., labor, materials) divided by the quantity of output produced, showing the variable cost per unit of output.

Workers

Individuals engaged in physical or mental labor to produce goods or provide services in exchange for wages.

Units

Basic quantities of measurement or items in inventory or production.

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit.