Question
1.Assume the production cost (dollars/unit) for a manufacturing unit of a certain product is given by f (x) = 2(1+x) e -x + 5+250 where
1.Assume the production cost (dollars/unit) for a manufacturing unit of a certain product is given by f (x) = 2(1+x) e-x + 5+250 where x is the number of units.
(a)Show that the marginal cost of the production will be increased to a certain value of x, and then decreasing from there on. You can consider x a continuous variable. For instance, it is alright to have x=0.1, partial unit of the product. In a practical application, you can always rounded your final calculated result in a whole unit (e.g., x=0.85 as x=1 unit).
(b)Explain (no actual calculation is required) how you will determine at what level of production that will have the minimum marginal cost.
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