a. Sketch the graph of the short run total cost function TC = 3q² +5g +300, for q=0 to q = 15; b. Find the marginal and average cost functions. Sketch their graphs. c. Explain in words why average cost is greater than marginal cost at all levels of output; d. How does the difference between marginal and average cost, MC - AC, behave as 9 increases without limit?
a. Sketch the graph of the short run total cost function TC = 3q² +5g +300, for q=0 to q = 15; b. Find the marginal and average cost functions. Sketch their graphs. c. Explain in words why average cost is greater than marginal cost at all levels of output; d. How does the difference between marginal and average cost, MC - AC, behave as 9 increases without limit?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...
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Transcribed Image Text:1. P1: Economic Applications of Functions and Derivatives
a. Sketch the graph of the short run total cost function TC = 3q² +5g+300, for
q=0 to q = 15;
b. Find the marginal and average cost functions. Sketch their graphs.
c. Explain in words why average cost is greater than marginal cost at all levels of
output;
d. How does the difference between marginal and average cost, MC - AC,
behave as 9 increases without limit?
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