Show transcribed image text Calculator permitted You may use the textbook and any other book You must list all references. The Apex Widget Company has determined that its marginal cost function is C 0...

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Show transcribed image text Calculator permitted You may use the textbook and any other book You must list all references. The Apex Widget Company has determined that its marginal cost function is C 0 ( r ) = 0.5x + 5, where x represents the number of boxes of widgets which can be produced each week and C is in dollars. The cost of producing 200 boxes of widgets is $22,500. Also, if they charge $50 per box, they will sell 350 boxes and if they charge $75 per box they will sell 300 boxes. Assume this demand equation is linear. Find: (Assume that a box of widgets can be opened and divided before being shipped to a customer and that there are 120 widgets in a box.) Suppose that boxes of widget cannot be opened and divided before being shipped to customers. Which of your answers to the questions in Part 1. will be changed ? Explain how. Find what the new answers to these questions will be. Suppose that plant capacity is such that not more than 200 boxes of widgets can be produced each week. Which of your answers to the questions in Part 1. will be changed ? Explain how. Fintl what the new answers to these questions will be.

Answered Same DayDec 25, 2021

Answer To: Show transcribed image text Calculator permitted You may use the textbook and any other book You...

Robert answered on Dec 25 2021
121 Votes
(e) the (total) cost function
we have ,
on integrating this equation we get
We have given
, C(200) = 22,500
Hence, the (total) cost function
(f) the average cost function.
average cost function. would be
(g) The production level (number of boxes) which yields minimum average cost
We have average cost
On differentiating this wrt x , we get
On solving this , we found no global minima
Average cost...
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