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Aki's Bicycle Designs has determined that when x hundred bicycles are built, the average cost per bicycle is given by C(x)=0.5x^2 -1.3x+9.972, where C(x) is in hundreds of dollars. How many bicycles should the shop build to minimize the average cost per bicycle? ...?

Verified Answer :

scme1702

The minimum of the cost can be found by differentiating the cost equation with respect to the number of bicycles and then equating the differential to 0.
0 = x -1.3
x= = 1.3
0.3 cycles cannot be built, so the company should make 1 bicycle to minimize cost.

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