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Explanation & Answer
a) The average cost function A(x) = C(x)/x where x is the number of units produced;
A(x) = (80x + 30000)/x = 80 + 30000/x.
b) A(1000) = 80 + 30 = 110
A(10000) = 80 + 3 = 83
A(100000) = 80 + 0.3 = 80.3
c) As x tend to infinity, the average cost tends to 80, lim x-> infty A(x) = 80.
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