Your Company Is Planning to Air a Number of Television $D ( x ) = 25,000 \sqrt { x }$

Multiple Choice

Your company is planning to air a number of television commercials during the ABC television network's presentation of the Academy Awards. ABC is charging your company $725,000 per 30-second spot. Additional fixed costs (development and personnel costs) amount to $400,000, and the network has agreed to provide a discount of $D ( x ) = 25,000 \sqrt { x }$ for x television spots. Compute marginal cost $C ^ { \prime } ( 5 )$ and average cost $\bar { C } ( 5 )$ .

A) $C ^ { \prime } ( 5 ) = \$ 718,410$ per spot; $\bar { C } ( 5 ) = \$ 793,820$ per spot
B) $C ^ { \prime } ( 5 ) = \$ 793,820$ per spot; $\bar { C } ( 5 ) = \$ 756,615$ per spot
C) $C ^ { \prime } ( 5 ) = \$ 719,410$ per spot; $\bar { C } ( 5 ) = \$ 793,720$ per spot
D) $C ^ { \prime } ( 5 ) = \$ 793,820$ per spot; $\bar { C } ( 5 ) = \$ 719,410$ per spot
E) $C ^ { \prime } ( 5 ) = \$ 719,410$ per spot; $\bar { C } ( 5 ) = \$ 793,820$ per spot