The average cost per item to produce items is given by

What is the total cost, , of producing goods?

What is the minimum marginal cost?
minimum MC =
(Be sure you can say what the practical interpretation of this result is!)

At what production level is the average cost a minimum?

What is the lowest average cost?
minimum average cost =

Compute the marginal cost at .

How does this relate to your previous answer? Explain this relationship both analytically and in words.

You can earn partial credit on this problem.