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21 September, 10:49

A manufacturer of lighting fixtures has daily production costs of

C = 800 - 40x + 0.25x2,

where C is the total cost (in dollars) and x is the number of units produced. How many fixtures should be produced each day to yield a minimum cost?

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  1. 21 September, 10:52
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    To calculate this we need to find derivative of C

    C' = - 40 + 0.5x = 0

    x = 40/0.5 = 80

    Every time you have a function that depends on some variable and you need to calculate minimum or maximum, make derivative of it and set it equal to 0
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