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Demand Function, Cost Function

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1. When x=500 units, is the demand elastic, inelastic, or unit elastic? The demand function is P(x) = 100-x/400 in dollars

2. The cost function to produce x items is given by: C(x)=1/9x^2 - 2x + 100 in dollars. Determine the production level of x that will minimize the average cost for this product. What is the average cost at this production level? What is the cost at this production level?

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Answers questions on Demand Function, Cost Function.

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1. When x=500 units, is the demand elastic, inelastic, or unit elastic? The demand function is P(x) = 100-x/400 in dollars

P(x) = 100-x/400 in dollars
Therefore
when x= 500
P(500)= 98.75 =100-500/400

P(x) = 100-x/400 in dollars
Therefore
delta P / delta x = - 1/400= ...

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