Question

Shaki makes and sells backpack danglies. The total cost in dollars for Shaki to make q danglies is given by c(q)= 75+2q+0.015q^2 . Find the quantity that minimizes Shaki

Answer 1

Minimum quantity = q = 70.71units

Explanation:

Give c(q)= 75+2q+0.015q^2

but average cost A(q) = c(q)/q

A(q) = 75/q + 2 + 0.015q

for minimum cost, differentiate A (q) wrt q

= -75/q2 + 0.015 = 0

q2 = 5000

q = 70.71units