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The variable cost (V) of manufacturing a product varies according to the equation V= 4q, where q is the quantity produced. The fixed cost (f) of production of same product reduces with q according to the equation F= 100/q. How many units should be produced to minimize the total cost(V + F)?
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- 5
- 4
- 7
- 6
- 5
Correct Option: A
Checking with all options in formula (4q + 100/q) i.e. (V + F). Option (a) gives minimum cost.
