Question: Consider the output quantity vector below. It relates to quantity produced per plant, per day: Q 0 1 2 3 4 5 6 7 8
Consider the output quantity vector below. It relates to quantity produced per plant, per day:
Q |
| 0 |
| 1 |
| 2 |
| 3 |
| 4 |
| 5 |
| 6 |
| 7 |
| 8 |
| 9 |
| 10 |
| 11 |
| 12 |
| 13 |
| 14 |
| 15 |
Consider a cubic total cost function (estimated using historical production data):
TC(Q)=5+0.32*Q-0.25*Q2+0.38*Q3
Compute the average and marginal cost starting from Q=1 up to Q=15. The absolute value of the difference between average and marginal cost is minimized when _____ units are produced.
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