The cost C (in dollars) of producing x units of a product is given by C = 100,000 + 0.9x and the average cost per unit C̅ is given by
C̅ = C / x = 100,000 + 0.9x / x, x>0.
(a) Sketch the graph of the average cost function.
(b) Find the average costs when x = 1000, x = 10,000, and x = 100,000.
(c) By increasing the level of production, what is the least average cost per unit you can obtain? Explain.