Answer to Question #346889 in Calculus for Elliot

Question

A firm has the following average cost function:

AC = 50+10/Q

(a) Show by differentiation that AC decreases indefinitely as Q

increases. Give an economic interpretation of this phenomenon

(b) Write down the equation for total cost. Hence, write down the

equation for total variable cost and average variable costs. State the

value of fixed costs.

(c) Write down the equation for marginal costs. Comment on the

relationship between TC and MC in this example.

Answer 1

It's been a while since this question is posted here. Still, the answer hasn't been got. Consider converting this question to a fully qualified assignment, and we will try to assist. Please click the link below to proceed: Submit order