Your company is planning to air a number of television commercials during a television network's presentation of the an awards show. The network is charging your company $1.9 million per 30- second spot. Additional fixed costs (development and personnel costs) amount to $500,000, and the network has agreed to provide a discount of $170,000 for x television spots. (a) Write down the cost function C, marginal cost function C', and average cost function 7. C(x) = x C'(x) = x [(x) =
(b) Compute C'(3) and C(3). (Round all answers to three significant digits.) C'(3) = $ per spot Ĉ(3) = $ per spot Use these two answers to say whether the average cost is increasing or decreasing as x increases. The average cost is increasing as x increases. The average cost is decreasing as x increases.