Modeling Average Cost
Write and interpret rational functions in real-world situations.
Students build average-cost models by dividing a total-cost rule by the number of items, then interpret how a one-time fee is spread over more items.
Lesson plan and worked examples by TEKSForge · not a TEA-issued lesson. Videos by independent educators.
Archived course: TEKS code and readiness label from TEA's 2013 Algebra II key. Algebra II is not one of Texas's current required STAAR EOC assessments, and this lesson does not change the Biology and Algebra I Study Plans.
Learn the concept
Total cost first
A one-time fee plus a constant cost per item gives a linear total-cost function: , where x is the number of items. Include taxes or other charges only when the context says to add them.
Divide for the average
Average cost per item is . Because x is in the denominator, the model is rational. In context, x must be a positive whole number.
Long-run behavior
Rewrite as . As x becomes large, the fee's share shrinks, so the average approaches the per-item rate. That rate is a horizontal asymptote.
Worked example
Custom T-shirts cost 6 dollars each plus a 120-dollar setup fee. How many shirts make the average cost 10 dollars per shirt?
- Total cost: .
- Average cost: .
- Set and multiply by x: .
- Solve: , so . Check: .
30 shirts
Watch the lesson
Texas public-school, Texas educator-created, and TEKS-aligned lessons, hosted by their creators. Each card names its source.
Algebra 2 Solving Contextual Rational Equations
UT IPSI · Kid2Kid / Texas Education AgencyModel real-world situations with rational equations and interpret their solutions.
Watch on YouTubeAlgebra 2 Modeling With Direct or Inverse Variation
UT IPSI · Kid2Kid / Texas Education AgencyRecognize quantities that vary inversely, a key relationship in rational models.
Watch on YouTubeTry it yourself
TEKSForge practice · unscored
1. A gym charges a 50-dollar joining fee plus 25 dollars per month. Write the average monthly cost for m months.
Show answer and reasoning
The total cost is 25m + 50 dollars. Dividing by the number of months gives the average cost per month.
2. For , what value does the average cost approach when x is very large?
Show answer and reasoning
4 dollars per item
Rewrite as . The fraction approaches 0 as x grows, leaving the per-item cost.
Released STAAR practice
Texas Education Agency · archived 2013 released EOC items · scored with TEA's answer key; step-by-step explanations written by TEKSForge because this release has no rationales. Original graphs, tables, and diagrams are shown where the released item includes one.
Archived released STAAR Algebra II EOC · 2013 · Item 5 · 1 point
The cost of printing cookbooks is $2.09 per book plus a one-time setup fee of $349. All taxes are included. Which function models , the average cost per book of printing cookbooks?
Show STAAR answer and explanation
The total cost is . Average cost per book divides that total by the number of books, giving .
: The per-book cost should be 2.09, not ; the full total-cost numerator must be divided by x.
: The numerator must include the variable printing cost , and average cost divides by x alone.
: Dividing by introduces an extra 2.09 factor; the number of books is only x.
Archived released STAAR Algebra II EOC · 2013 · Item 28 · 1 point
The function models the equivalent resistance in ohms, , when a fixed 9-ohm resistor is connected in parallel with a variable resistor of ohms. Which value of is closest to the number of ohms needed in the variable resistor for there to be an equivalent resistance, , of 6.4 ohms?
- 15.4
- 57.6
- 3.7
- 22.2
Show STAAR answer and explanation
22.2
Set and multiply: . Then , so ohms.
15.4: 15.4 is . Substituting it gives ohms.
57.6: 57.6 is , an intermediate value. Divide by 2.6 to finish solving.
3.7: gives ohms. A parallel resistance is less than either resistor, so x must be greater than 6.4.
Learning objectives
By the end of the lesson, students can:
- Write a total-cost function with a fixed fee and a per-item cost.
- Write the average-cost rational function by dividing total cost by the number of items.
- Interpret the long-run behavior of average cost and solve for a target average.
Instructional sequence
- 1
Engage
5 minA club pays a 100-dollar setup fee plus 2 dollars per shirt. Ask whether ordering more shirts makes each one cheaper on average.
- 2
Direct instruction
10 minSeparate total cost from average cost. Model C(x) = fixed + rate·x and a(x) = C(x)/x.
- 3
Table investigation
13 minCompute average cost for 10, 50, 100, and 1,000 items and describe the trend toward the per-item rate.
- 4
Solve in context
15 minSet the average-cost function equal to a target, multiply both sides by x, and interpret the solution as a number of items.
- 5
Closure
7 minStudents explain the meaning of a(x) and complete the exit ticket.
Misconceptions to address
Teacher move: Total cost answers “how much altogether?” Average cost answers “how much per item?” Divide the whole total by x.
Teacher move: Average cost is . Rewriting gives , so the per-item cost remains.

