Question

Where C(x) is in hundreds Of dollars. How many bicycles should the shop build to minimize the average cost per bicycle

Answer 1

The average cost is given by the next equation:

`C(x)=0.1x^2-0.5x+5.582`

The graph of the function is

As we can see the parabola opens upwards therefore the minim will be located in the vertex

`x=(-b)/(2a)`

in our case

b=-0.5

a=0.1

`x=(0.5)/(2(0.1))=2.5`

2.5 hundred

Then

`2.5*100=250`

Therefore, the shop should build 250 bicycles