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13 October, 17:34

10. A certain company has a fixed cost of $200 per day. It costs the company $3.10 per unit to make its products. The company is tracking its average cost to make x units using f (x) = 200+3.10x / x. Which statement is true?

a. The horizontal asymptote of y = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.

b. The horizontal asymptote of y = 0 represents that the average cost per unit will approach $0 as the number of units produced increases.

c. The vertical asymptote of x = 3.10 represents that the average cost per unit will approach $3.10 as the number of units produced increases.

d. The vertical asymptote of x = 0 represents that the average cost per unit will approach $0 as the number of units produced increases.

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Answers (1)
  1. 13 October, 17:56
    0
    The answer is "a"

    If you make a lot of products then the fixed cost will be very small per product, therefore the unit cost will be closer to the variable cost of 3.1
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