Answer to Question #146620 in Microeconomics for Ronoh Kipngeno

Question

A firm has a monopoly in the market for match boxes. In order to produce Q match boxes, it cost a firm C(Q)=2Q^2
A) Find the marginal cost of producing a matchbox for this firm?

Answer 1

$\bold {Answer}$

$MC = 4Q$

$\bold {Solution}$

Marginal cost is found by differential calculus, given the total cost function.

$MC = \dfrac {d}{dQ} (TC)$

$= \dfrac {d}{dQ} [C(Q)]$

$= \dfrac {d}{dQ} (2Q^2)$

$= 4Q$

Therefore, the marginal cost is $\$4Q$