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For a manufacturer, total cost function is given by C=x225+2xC = \frac{x^2}{25} + 2x. Which of the following are correct ?

A. 2.6 is the marginal cost when 5 units are produced.

B. 2x25+2\frac{2x}{25} + 2 is the marginal cost function.

C. x25+2\frac{x}{25} + 2 is the average cost function.

D. 2.4 is the marginal cost when 5 units are produced.

E. x25+1\frac{x}{25} + 1 is the average cost function.

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 3

MC=dC/dx=2x/25+2MC = dC/dx = 2x/25 + 2, so MC formula in B is correct. AC=C/x=x/25+2AC = C/x = x/25 + 2, so AC formula in C is correct (E is wrong). At x=5x = 5: MC=10/25+2=2.4MC = 10/25 + 2 = 2.4, so D is correct (A is wrong). Hence C, B, D only.

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