Hi
I am having trouble with this question and am not sure if i am doing it right.
C(x) = 480000 + 2.4x + 0.0008x^2
p(x) = 4 - 0.001x
a) What production level will minimize the average cost?
b) What level of sales will maximize the profits?
For a), I did A(x) = C(x)/x < Is that correct?
For b), I did P = p(x)(x) - C(x) < Is that correct?
Please tell me if I am making a mistake and how i should do it.
Thanks in advance.