Posted by Brett on .
Im having trouble with filling in a table for MC TC and AC given a cost funchtion
The cost functon is C(q)= 50+.5q
im given q 1 through 7
Ive aready calculated TC for q=1 TC=50.5 for q=2 TC=51 and so on
MC is where im having Trouble.
i know MC = dC(q)/dq or change in cost over change in q.
my teacher is telling me that the MC for q=2 IS 51/2=25.5 But wouldnt MC= .5/1 ( 51-50.5)/(2-1) I cant get him to respond to my emails and im panicing
It would help if you told us what MC, TC and AC mean. Marginal, total and average cost? It looks like your C(q) is already a total cost.
The marginal cost is the cost of making one more. That is clearly 0.5 here.