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CA Foundation · Quantitative Aptitude · Differential and Integral Calculus

The total cost of producing x units is C(x) = 0.5x² + 20x + 800. The output at which the average cost per unit is minimum is:

Average cost is minimum at 40 units. Dividing cost by x gives AC = 0.5x + 20 + 800/x; setting its derivative 0.5 − 800/x² to zero gives x² = 1600, so x = 40, and the second derivative is positive there.

  1. Ax = 20
  2. Bx = 40Correct
  3. Cx = 80
  4. Dx = 16

Explanation

AC = 0.5x + 20 + 800/x. AC' = 0.5 − 800/x² = 0 gives x² = 1600, so x = 40. AC'' = 1600/x³ > 0, confirming a minimum. Choosing x = 20 would come from wrongly using x² = 400.

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