Suppose the Total Cost Function for Manufacturing a Certain Product

question 33

Multiple Choice

Suppose the total cost function for manufacturing a certain product is dollars, where x represents the number of units produced. Find the level of production that will minimize the average cost. Round the answer to the nearest integer.

• A) 46 units
• B) 50 units
• C) 40 units
• D) 44 units

---

Definitions:

Rival

A characteristic of a good or service that implies its consumption by one individual prevents simultaneous consumption by another individual.

Public Goods

Public goods are commodities or services that are provided without profit to all members of a society, either by the government or a private individual or organization.

Private Goods

Goods that are both excludable and rivalrous, meaning only those who pay for them can use them, and one person's use of the good reduces others' ability to use it.

Common Resources

Goods that are rival in consumption but not excludable