Question
A customer is planning to purchase one of two models of a particular appliance. The costs of purchasing and operating both models of appliance are
A customer is planning to purchase one of two models of a particular appliance. The costs of purchasing and operating both models of appliance are given in the table below. These costs do not include maintenance charges or changes in electricity prices.
Type of CostModel 1Model 2Initial Cost$
$
886$
$
893Annual Cost of Electricity$
$
42$
$
49
A) Express the total cost,C
1
(
x
)
C
1
(
x
)
, and the average cost of purchasing and operating the first model applicance.
C
1
(
x
)
=
C
1
(
x
)
=
C
1
(
x
)
=
C
1
(
x
)
=
B) Express the total cost,C
2
(
x
)
C
2
(
x
)
, and the average cost of purchasing and operating the first model applicance.
C
2
(
x
)
=
C
2
(
x
)
=
C
2
(
x
)
=
C
2
(
x
)
=
C) Find the limit of each average cost function asx
x
.
lim
x
C
1
(
x
)
=
lim
x
C
1
(
x
)
=
lim
x
C
2
(
x
)
=
lim
x
C
2
(
x
)
=
D) Over time the average cost of purchasing and operatingSelect an answerModel 1Model 2will be cheaper.
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