Answer to Question #125481 in Microeconomics for Venom

Question

If TC = 150 + 2Q + 0.01Q^0.5
Find marginal and average cost at 50 units input

Answer 1

a.Marginal cost when q= 50

$Mc={d_{Tc}\over d_q}$

$Mc=2+0.05q^{-0.5}$

$Mc= 2+0.05(50)^{-0.5}$

$Mc=2.0007071$

b.Average cost when q= 50

$Avc={Tc\over q}$

$Avc={{150+2q+0.001q^{0.5}}\over q}$

${150\over q}+2-{0.005\over q^{1.5}}$

${150\over 50}+2-{0.005\over 50^{1.5}}$

$3+2-0.00001414$

$4.99998586$