Asked by sami
A firm's total cost is Tc=40+100Q-420Q^2+30Q^3. Find the unit of production at which average variable cost at minimum.
Answers
Answered by
Steve
Note that the marginal cost is the derivative of the total cost.
Note that the average variable cost is the integral of the marginal cost over the given interval.
AVC is a minimum when MC = AVC.
A nice video is here:
https://www.youtube.com/watch?v=TBCAHbhhvTg
Note that the average variable cost is the integral of the marginal cost over the given interval.
AVC is a minimum when MC = AVC.
A nice video is here:
https://www.youtube.com/watch?v=TBCAHbhhvTg
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.