A Study of Driving Costs of 1992 Model Subcompact (Four-Cylinder)

question 216

Short Answer

A study of driving costs of 1992 model subcompact (four-cylinder) cars found that the average cost (car payments, gas, insurance, upkeep, and depreciation), measured in cents/mile, is approximated by the function where x denotes the number of miles (in thousands) the car is driven in a year. What happens to the average cost as the number of miles driven increases without bound? Express your answer to the nearest tenth, if necessary.
It approaches __________ .

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Definitions:

Shut Down

A shut down refers to a temporary or permanent cessation of operations, typically due to economic conditions or strategic decisions.

Fixed Cost

Costs that do not vary with the level of production or sales, such as rent, salaries, or property taxes.

Insurance Premiums

Payments given to an insurer for the purpose of securing protection against monetary losses from certain risks.

Variable Cost

Expenditures that adjust based on the volume of output or services provided by a business.