Question: Hello, I need the answer to this question please. 2. (35 pts) A competitive firm has a total cost function given by, (Q) = cQ3

Hello, I need the answer to this question please.

Hello, I need the answer to this question please. 2. (35 pts)

2. (35 pts) A competitive firm has a total cost function given by, "(Q) = cQ3 + d, c> 0 and d > 0 where Q > 0 is the number of units produced, and c and d are, as indicated, positive parameters. (a) Find the average rate of change of the total cost function when the number of units Q produced changes. (b) Find the instantaneous rate of change of the total cost function with respect to the number of units Q produced. Verify your answer by taking the derivative of C(Q) with respect to Q. Now suppose (for the remaining parts: c, d and e), that c = 1 and d - 100. (c) Calculate the numerical value of the average rate of change of the total cost function when Q increases from 50 to 60 units. Interpret your result. (d) Find the equation of the line tangent to the total cost function C(Q) at output level Q - 50. Present the total cost function and the tangent line on the same graph indicating intercepts and the tangent point. (e) Does the total cost function C(Q) have an inverse? Why or why not? If it has an inverse, find its inverse function and verify the inverse function rule

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!