Q:

A small manufacturer constructs refrigerators. The fixed monthly cost is $200,000, and it costs $450 to produce one refrigerator. The average cost function to produce X refrigerators is represented by: c(x)= 200,000+450x/x. What is the horizontal asymptote of C(x)?

Accepted Solution

A:
Answer: Horizontal asymptote of c(x) is 450.Step-by-step explanation:Since we have given that Cost to produce one refrigerator = $450Fixed monthly cost = $200,000So, Average cost function to produce x refrigerators is given by[tex]c(x)=\dfrac{200000+450x}{x}[/tex]Horizontal asymptote of c(x) would be [tex]\dfrac{450x}{x}\\\\=450[/tex]Hence, Horizontal asymptote of c(x) is 450.