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The cost of controlling emissions at a firm rises rapidly as the amount of emissions reduced increases. Here is a possible model: The daily cost
The cost of controlling emissions at a firm rises rapidly as the amount of emissions reduced increases. Here is a possible model:
The daily cost in dollars to reduce emissions by q pounds of pollutant in a day is given by
Cqq
a What is the average daily cost per pound when emissions are reduced by q pounds in a day?
Cq
Incorrect: Your answer is incorrect.
b What level of reduction corresponds to the lowest average daily cost per pound of pollutant? Round your answer to two decimal places.
Incorrect: Your answer is incorrect.
pounds of pollutant
What would be the resulting minimum average daily cost per pound? round to the nearest dollar
Incorrect: Your answer is incorrect.
dollars
Second derivative test:
Your answer above is a critical point for the average daily cost function. To show it is a minimum, calculate the second derivative of the average daily cost function.
Cq
Incorrect: Your answer is incorrect.
Evaluate
Cq
at your critical point. The result is
Select
Incorrect: Your answer is incorrect.
which means that the average cost is
Select
Incorrect: Your answer is incorrect.
at the critical point, and the critical point is a minimum.
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