Question

For the cost function shown below, calculate average costs when q=10 c left parenthesis q right parenthesis equals 500 plus 50 q

Answer 1

The average costs when q = 10 for the cost function is $100 per unit, calculated by substituting q with 10 into the cost function C(q) = 500 + 50q to find the total cost, and then dividing it by the quantity.

Step-by-step explanation:

The student's question is asking to calculate the average costs when the quantity q equals 10 for the given cost function C(q) = 500 + 50q. To find the average cost, we divide the total cost by the quantity produced. Using the provided cost function, we can substitute q with 10 to get the total cost and then calculate the average cost.

First, let's find the total cost for q = 10:
C(10) = 500 + 50(10) = 500 + 500 = 1000.

Now, we calculate the average cost by dividing the total cost by the quantity:
Average cost = C(10) / 10 = 1000 / 10 = 100.

Therefore, when q = 10, the average costs is $100 per unit.