Find the production level that minimizes the average cost per unit. Transcribed Image Text: Calculus is a powerful tool used in economics. One of the initial applications areas is the study of a firm, a topic in microeconomics. An important function is

the cost function function C (x), the cost of producing x items (of whatever they are selling). This question deals with just the cost function C (x).

Problem Set question:

The cost, in dollars, of producing x units of a certain item is given by

C (x) = 15x – 4/x – 7.

Find the production level that minimizes the average cost per unit.

The number of units that minimizes the average cost is Number