Question: . Given the total cost function: = 2 2 + 5 + 1800 Find the output at which average cost is at its minimum. Find

. Given the total cost function: = 22+ 5 + 1800

  1. Find the output at which average cost is at its minimum.
  2. Find the minimum level of AC at this point.
  3. Show that ACis at its minimum when q= 4, and that MC= ACat this output.
  4. Sketch the graphs of the MCand ACfunctions, on the same axes.

If the TCfunction is linear, on what assumptions can MC= AC?

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