(2) Minimize the average cost for the following total cost function (TC) by finding out (a) average cost function; (b) the critical values (the output values) at which AC is minimized; (c) checking the second order conditions; and (d) the minimum average cost. TC(Q) = Q' - 5Q + 60Q.

(2) Minimize the average cost for the following total cost function (TC) by finding out (a) average cost function; (b) the critical values (the output values) at which AC is minimized; (c) checking the second order conditions; and (d) the minimum average cost. TC(Q) = Q' - 5Q + 60Q.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.6CE

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Question

(2) Minimize the average cost for the following total cost function (TC) by finding out
(a) average cost function;
(b) the critical values (the output values) at which AC is minimized;
(c) checking the second order conditions; and
(d) the minimum average cost.
TC(Q) = Q' - 50² + 60Q.

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