Use the equations in Exercise 11.14 to make rough sketches of cost and marginal cost as functions

Question:

Use the equations in Exercise 11.14 to make rough sketches of cost and marginal cost as functions of output Q.

Exercise 11.14

A firm has this cost function:

where Q is output (the number of items produced) and C is the total cost of producing these items. The marginal cost MC is

a. What is the marginal cost at Q = 0?

b. At Q = 0, is the slope of the marginal cost function positive or negative?

c. Does the slope of the marginal cost function increase or decrease as Q increases?

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Essential Statistics Regression And Econometrics

ISBN: 9780123822215

1st Edition

Authors: Gary Smith

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Question Posted: Mar 16, 2024 12:00 PM

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Use the equations in Exercise 11.14 to make rough sketches of cost and marginal cost as functions

Question:

C = 1,200Q-45Q+0.60

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Essential Statistics Regression And Econometrics

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