Question

A certain company has a fixed cost of $200 per day. It costs the company $3.10 per unit to make its products. The company is tracking its average cost to make x units using f(x)= (200+3.10x)/(X) Which statement is true?

A. The horizontal asymptote of y = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.
B. The horizontal asymptote of y = 0 represents that the average cost per unit will approach $0 as the number of units produced increases.
C. The vertical asymptote of x = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.
D. The vertical asymptote of x = 0 represents that the average cost per unit will approach $0 as the number of units produced increases.

Answer 1

A on edge

Explanation:

Answer 2

Given:
f(x) = (200 + 3.10x) / x

Finding the horizontal asymptote
1) put equation in y form: y = 200 + 3.10x / x
2) remove everything except the terms with the biggest exponents of x
y = 3.10x / x
3) remove x to recognize the horizontal asymptote: y = 3.10

Finding the vertical asymptote
1) set the denominator to be equal to 0 and solve for x
f(x) = 200 + 3.10x / x

x = 0

f(x) = 200 + 3.10 x / 0

My answer is:

A. The horizontal asymptote of y = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.