The cost function of a product is given by , where x is the number of units produced. In order to minimize the marginal cost, how many units of the product must be produced?
The cost function of a product is given by , where x is the number of units produced. In order to minimize the marginal cost, how many units of the product must be produced?
Solution
✅ Correct Option: 4
Marginal cost is .
To minimise it, set , giving .
Since , this is indeed a minimum.
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