3. Suppose that the cost function of q is given by: C (q) = 16 + 4q...
Fantastic news! We've Found the answer you've been seeking!
Question:
3. Suppose that the cost function of q is given by: C (q) = 16 + 4q + q^2
(a) Find the fixed and variable cost.
(b) Find the average cost and marginal cost. 1
(c) 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)
Related Book For
Posted Date: