1. Suppose the total cost to a firm of producing a quantity q of some commodity isC(q)- 490+ 20g +0. lq² dollars.a) Find the corresponding marginal cost (MC(q) and average cost (4C(9)b) Find the minimum average cost and the output level at which it is achieved ic) Verify that MC(q) AC(q) at this output level you found in section "b)"

a) The marginal cost of the firm can be calculated through the derivation of the cost function with…

1. Suppose the total cost to a firm of producing a quantity q of some commodity is C(4) - 490 + 20g + 0. 1q² dollars. a) Find the corresponding marginal cost (MC(q)) and average cost (AC(q)) b) Find the minimum average cost and the output level at which it is achieved ( c) Verify that MC(q)-AC(q) at this output level you found in section "b)"

1. Suppose the total cost to a firm of producing a quantity q of some commodity is C(4) - 490 + 20g + 0. 1q² dollars. a) Find the corresponding marginal cost (MC(q)) and average cost (AC(q)) b) Find the minimum average cost and the output level at which it is achieved ( c) Verify that MC(q)-AC(q) at this output level you found in section "b)"

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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