The average cost function associated with producing and marketing x units of an item is given by AC = 2x – 11 + 50/x . Find the range of values of the output x, for which AC is increasing.
AC = 2x – 11 + 50/x
d/dx (AC) = 2 – 0 – 50/x2
d/dx (AC) =2 – 50/x2
For AC to be increasing
Hence, the average cost increases, if the output x > 5 i.e., (5, ∞).