Determine the minimum average cost

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Reference no: EM138289

Q. The Warren & smith company manufactures commercial zippers of the two kids, X and the kind Y. Its production department estimates that the average cost function of the firm is

AC=X^2 +2Y^2 - 2XY -2X- 6Y +20

The manager of the firm would like to know the level of output of zipper X and zipper Y at which the average cost of the f rm is reduced also the level of this reduced average cost. The firm expects an order that will require it to produce a total output of 6 units of both kinds of zippers (each unit may be a large number of zippers), and so the manager would also like to know how many of each type of zipper the firm must produce to minimize its average cost also what its minimum average cost would be if it obtain the order. The manager gives this assignment to two researchers who use different methods to obtain their answers.
Although firm expects the order to be of 6 units, determine the minimum average cost of the firm with these different order sizes.

Reference no: EM138289

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