If the total daily cost, in dollars, of producing plastic rafts for swimming pools is given by C(x) = 500 + 8x + 0.05x2 where x is the number of rafts produced per day, then the average cost per raft produced is given by C̅ (x) = C(x)/ x, for x > 0.
(a) Graph this function.
(b) Discuss what happens to the average cost as the number of rafts decreases, approaching 0.
(c) Find the level of production that minimizes average cost.