QT – Nov 2017 – L1 – Q6c – Elements of Calculus

Determine the optimal production level that minimizes production costs for a company capable of producing 60,000 cans per day.

Question

If, after expanding its facilities, the company is capable of producing 60,000 cans in a day and the total daily cost is given by:

Required:
How many cans per day should they produce in order to minimize production costs?

Answer

To minimize production costs, we need to find the value of $x$ that minimizes the cost function. This is done by taking the first derivative of the cost function and setting it equal to zero.