What is the marginal average cost function?
It is meaningless.
There is an average cost function.
There is a marginal cost function.
combining them is meaningless.
That's interesting you say that, listed under my professor's list of things we need to study, he has that listed. Do you believe it to be a mistake? Should I email him perhaps? I see what you are saying here. Thank you Bob.
He might have meant
marginal/average cost function.
Email him at your own peril.
The marginal average cost (MAC) function represents the rate at which the average cost changes as the level of production or output increases. It can be calculated by taking the derivative of the average cost function with respect to the quantity produced.
To understand the concept of the marginal average cost function, you first need to know what the average cost function is. The average cost (AC) is calculated by dividing the total cost (TC) by the quantity produced (Q), so AC = TC/Q.
To find the marginal average cost function, you need to differentiate the average cost function with respect to quantity. The derivative, or rate of change, of the average cost function will give you the marginal average cost function.
For example, let's say the average cost function is given by AC = 1000/Q + 10Q. To find the marginal average cost function, you differentiate this function with respect to Q:
d(AC)/dQ = -1000/Q^2 + 10
Now you have the marginal average cost function, which represents the rate of change of the average cost as the level of production increases. This function tells you how much the average cost will increase or decrease when you produce one additional unit.
It's important to note that the marginal average cost function may differ from the marginal cost function. The marginal cost function represents the change in the total cost as the quantity produced changes, while the marginal average cost function focuses on the change in average cost.
To summarize, the marginal average cost function is obtained by taking the derivative of the average cost function with respect to the quantity produced. It helps in understanding how the average cost changes as the level of production increases.