Homework Help Forum: Economics

Posted by cb on Sunday, October 25, 2009 at 2:39am.

3q2+5q+300 Find the marginal and average cost functions. Show that AC is at its minimum when q = 10 and that MC = AC at this output

• Economics - economyst, Sunday, October 25, 2009 at 10:27am

  Marginal cost is the first derivitive of the total cost function. So,, MC = 6q + 5 AC = 3q + 5 + 300/q. To find the minimum AC, take the first dirivitive and set equal to zero. AC' = 3 - 300/q^2 = 0. Solve for q. Thus, q=10 at the minimum of the AC curve. So, at q=10 AC = 30+5+30 = 65 and MC = 60+5 = 65 QED

  
  

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