Question: The graph of a cost function is given in Figure 4.66. (a) At q = 25, estimate the following quantities and represent your answers graphically.

The graph of a cost function is given in Figure 4.66.
(a) At q = 25, estimate the following quantities and represent your answers graphically.
(i) Average cost (ii) Marginal cost
(b) At approximately what value of q is average cost minimized?

500 400 300 200 100 S C(q) 10 20 30 40 50

500 400 300 200 100 S C(q) 10 20 30 40 50 Figure 4.66 9

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