Question: 7 . 3 The long - run total cost function for a firm producing skateboards is T C = q 3 - 4 0 q
The longrun total cost function for a firm producing skateboards is
where 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
Show that this marginal cost curve intersects average cost at its minumum value.
d Graph the average and marginal cost curves for skareboard production.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
