Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

If $C(x)=x^2+5x+36$ is the total cost function for producing x units. The outputs for which average cost increases are :

Options:

[6, ∞)

(6, ∞)

(- ∞, -6) ∪ (6, ∞)

(- ∞, ∞)

Correct Answer:

(6, ∞)

Explanation:

The correct answer is Option (2) → (6, ∞)

The average cost (AC) is,

$AC=\frac{C(x)}{x}=\frac{x^2+5x+36}{x}$

$=x+5+\frac{36}{x}$

$AC'(x)=1-\frac{36}{x^2}=0$

$⇒x=6$

⇒ Average cost increases for $x>6$.