Marginal cost is the first derivitive of the total cost function. So,,
MC = 6q + 5
AC = 3q + 5 + 300/q. To find the minimum AC, take the first dirivitive and set equal to zero.
AC' = 3 - 300/q^2 = 0. Solve for q. Thus, q=10 at the minimum of the AC curve. So, at q=10 AC = 30+5+30 = 65
and MC = 60+5 = 65
QED
3q2+5q+300
Find the marginal and average cost functions.
Show that AC is at its minimum when
q = 10 and that MC = AC at this output
1 answer
1 answer