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7 . 3 The long - run total cost function for a firm producing skateboards is T C = q 3 - 4 0 q

7.3 The long-run total cost function for a firm producing skateboards is
TC=q3-40q2+430q
where q is the number of skateboards per week.
a. What is the general shape of this total cost function?
b. Calculate the average cost function for skate boards. What shape does the graph of this function have? At what level of skateboard output does average cost reach a minimum? What is the average cost at this level of outpue?
c. The marginal cost function for skateboards is given by
MC=3q2-80q+430
Show that this marginal cost curve intersects average cost at its minumum value.
d. Graph the average and marginal cost curves for skareboard production.

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