Suppose that cost function is C(Q) = mQ 2 + nQ + p. Find the point thataverage cost function A(Q) has a minimum point. The cost function of producing Q units of good s.t:C(Q) = 4Q² + 16Q + 40

Average cost=total cost/quantity

Answered: Suppose that cost function is C(Q) = mQ…

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Suppose that cost function is C(Q) = mQ 2 + nQ + p. Find the point that average cost function A(Q) has a minimum point.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 6MC

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Suppose that cost function is C(Q) = mQ ² + nQ + p. Find the point that
average cost function A(Q) has a minimum point.

The cost function of producing Q units of good s.t:
C(Q) = 4Q² + 16Q + 40

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