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Suppose that the total cost of producing \( x \) units of a product is \(c(x)\) \(= x^3 - 6x^2 + 15x\).…

Average cost is \(A(x)=c(x)/x=x^2-6x+15\) for positive output. Setting \(A'(x)=2x-6=0\) gives \(x=3\). Since \(A''(x)=2>0\), average cost is minimized at three units.

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Suppose that the total cost of producing x x units of a product is c(x)c(x) =x3−6x2+15x= x^3 - 6x^2 + 15x. Find the number of units for which the average cost A(x) A(x) is minimum.

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Correct answer D

Average cost is A(x)=c(x)/x=x2−6x+15A(x)=c(x)/x=x^2-6x+15 for positive output. Setting A′(x)=2x−6=0A'(x)=2x-6=0 gives x=3x=3. Since A′′(x)=2>0A''(x)=2>0, average cost is minimized at three units.

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  • Maharashtra and Goa SET (MH SET)

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