i. Find the marginal cost (MC) and average cost (AC) as functions of q
The total cost function is:
The marginal cost is:
The average cost is:
ii. Find the output at which average cost is minimized
The marginal cost crosses the average cost at its minimum. Thus, at the minimum of the average cost, "MC = AC."
"9q = \\dfrac{81}{q}"
"q^2 = 9"
"q^* = \\sqrt{9} = 3"
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