Concept explainers
Cost and average cost Suppose that the total cost function, in dollars, for a certain commodity is given by
(a) Find the instantaneous rate of change of the average cost
(b) Find the level of production where this rate of change equals zero.
(c) At the value found in part (b), find the instantaneous rate of change of cost and find the average cost. What do you notice?
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Mathematical Applications for the Management, Life, and Social Sciences
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