The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q +20 + 400/q, where q is the firm's output. Derive and expression C(q) for the firm's total cost function.

The total revenue curve of a firm is R (q) = 40q - 12q2 and its average cost A(q) = 1/30q2 - 12.85q +20 + 400/q, where q is the firm's output. Derive and expression C(q) for the firm's total cost function.

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

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 4MC

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The total revenue curve of a firm is R (q) = 40q - 12q²and its average cost A(q) = 1/30q² - 12.85q +20 + 400/q, where q is the firm's output.

Derive and expression C(q) for the firm's total cost function.

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