Question
What calculation gets you to 1/2(Q^3) part of the equation? Monopolist inverse demand curve, P = 90- (3Q/2) The cost function, TC(Q) = 400Q +
What calculation gets you to 1/2(Q^3) part of the equation?
Monopolist inverse demand curve, P = 90- (3Q/2)
The cost function, TC(Q) = 400Q + [(Q^3)/2]
The marginal cost, MC =dTC/dQ
Step 1
TC(Q) = 400Q + [(Q^3)/2] , this is same as:
Step 2
TC(Q) = 400Q + 1/2(Q^3)
Step 3
MC=dTC/dQ=400+3/2Q^(3-1)
=400+3/2Q^2
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Economics
Authors: John Sloman, Jon Guest, Dean Garratt
10th edition
1292187859, 9781292187907 , 978-1292187853
