Question
Suppose that the cost function of q is given by: C (q) = 50 + 8q + 2q 2 1. Find the fixed and variable
Suppose that the cost function of q is given by: C (q) = 50 + 8q + 2q2
1. Find the fixed and variable cost.
2. Find the average cost and marginal cost.
3. Draw the relationship between MC and AC. Prove that they always intersect at the minimum. (Hint: compute the derivative of AC with respect to q and set it equal to zero. Then use this equation to show that MC=AC)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Microeconomics
Authors: Robert Pindyck, Daniel Rubinfeld
8th edition
978-0132870436, 132870436, 013285712X, 978-0133371178, 133371174, 978-0132857123
