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Math Help - Average Cost - Limits!

  1. #1
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    Average Cost - Limits!

    If c is the total cost in dollars to produce q units of a product, then the average cost per unit for an output, of q units is given by c (there's a line over the c) = c/q.

    Thus if the total cost equation is c = 5000 + 6q, then

    c(line over it) = (5000 / q) + 6


    For example, the total cost of an output of 5 units is $5030, and the average cost per unit at that level of production is $1006. By finding the limit q-->inifinity c(line over it), show that the average cost approaches a level of stability if the producer continually increases output. What is the limiting value of the average cost?

    therefore lim q-->inifnity = 5000/q + 6 = 0 + 6 = 6

    Now for the real question:

    Repeat the problem above, given that the fixed cost is $12,000 and the variable cost is given by the function cv= 7q

    Sooo the way i see it:

    C = 12000 + 7/q

    therefore 12000/q + 7

    = 0 + 7

    = 7?
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  2. #2
    Junior Member rubix's Avatar
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    Quote Originally Posted by alisheraz19 View Post

    C = 12000 + 7/q

    therefore 12000/q + 7

    = 0 + 7

    = 7?
    where did you get 7/q from?
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  3. #3
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    the text book gave it..

    it said " repeat the previous question given fixed cost of 12,000 and the variable cost given by cv = 7q"
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