Question
4. Assume a firm operating under a short run production period with a total cost function given
as Tc=200Q+5QTHE POWER 2+2QTHE POWER 3
4.1. What must be the output size to minimize the average cost of production, and show
if marginal cost of production is increasing or decreasing at this point (1.5pts)
as Tc=200Q+5QTHE POWER 2+2QTHE POWER 3
4.1. What must be the output size to minimize the average cost of production, and show
if marginal cost of production is increasing or decreasing at this point (1.5pts)
Answers
Bot
The output size to minimize the average cost of production is Q = 0. The marginal cost of production is decreasing at this point.