cost. As per given information for producing x units of certain item C ( x ) = labour cost + material cost + overhead cost. = x AC = C x ] g = = x d AC h = & AC ^ h = x d AC h = & - = & = x ⇒ x =160000 ` x = (– is not acceptable) When x = , AC ^ h = > AC is minimum at x = Hence items should be produced for minimum average cost. Exercise .
. The average cost function associated with producing and marketing x units of an item is given by AC Find the range of values of the output x , for which AC is increasing. . A television manufacturer finds that the total cost for the production and marketing of x number of television sets is C x ^ h .
If each product is sold for ` , , show that the profit of the company is increasing. . A monopolist has a demand curve x = – p and average cost curve AC , where p is the price per unit output and x is the number of units of output. If the total revenue is R = px , determine the most profitable output and the maximum profit.
. A tour operator charges ` per passenger with a discount of paisa for each passenger in excess of . The operator requires at least passengers to operate the tour. Determine the number of passenger that will maximize the amount of money the tour operator receives.
. Find the local minimum and local maximum of . The total revenue function for a commodity is R = Show that at the highest point average revenue is equal to the marginal revenue. - - .
. Inventory control Inventory