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**4littlepiggiesmom****Member**- Registered: 2006-01-09
- Posts: 42

A factory has fixed costs of 2,900 dollars, and each unit of their product costs 45 dollars to make. Using the letter 'x' for the number of units produced, find an expression for the average cost per unit if x units are produced.

What I think so far is that

45x(2900-x)...is that somewhat correct?

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**ryos****Member**- Registered: 2005-08-04
- Posts: 394

Not quite. Fixed costs are sunk, so they don't change no matter how much the company produces (or doesn't). So:

C = (2900 + 45x) / x

Is the average cost.

El que pega primero pega dos veces.

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**mathsyperson****Moderator**- Registered: 2005-06-22
- Posts: 4,900

...Which can also be written as C = 45 + 2900/x

Why did the vector cross the road?

It wanted to be normal.

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