Given that the total cost function is TC 100Q Q 2 1 3Q 3 where Q rate of output and TC total cost 1 Determine the marginal and average cost functions (4 marks) 2 Calculate the output level that minimizes average cost (8 marks) 3 Calculate the output level that minimizes marginal cost (8 marks) ...

Solution 1 Marginal function MC ddQTC MC ddQ100Q Q2 1 3Q3 MC 100 2Q Q2 Now Average cost function ...

Given that the total cost function is: TC = 100Q Q^2 + 1 / 3Q^3 where

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Given that the total cost function is:
TC = 100Q – Q^2 + 1 / 3Q^3 where Q = rate of output and TC = total cost

1 Determine the marginal and average cost functions. (4 marks)
2 Calculate the output level that minimizes average cost. (8 marks)
3 Calculate the output level that minimizes marginal cost. (8 marks)

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Managerial Economics Theory Applications and Cases

ISBN: 978-0393912777

8th edition

Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield

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Posted Date: Aug 17, 2022 11:26 AM

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Given that the total cost function is: TC = 100Q Q^2 + 1 / 3Q^3 where

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Solution 1 Marginal function MC ddQTC MC ddQ100Q Q2 1 3Q3 MC 100 2Q Q2 Now Average cost function ... View the full answer

Managerial Economics Theory Applications and Cases

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