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

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

  1. 1 Determine the marginal and average cost functions. (4 marks)

  2. 2 Calculate the output level that minimizes average cost. (8 marks)

  3. 3 Calculate the output level that minimizes marginal cost. (8 marks)

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

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