Question

Consider the following cost function: C= 0.393 - 6q2 +909 + 100 When output is 18 units, average cost is $ (Enter a numeric response using a real number rounded to two decimal places.) When output is 18 units, marginal cost is $ . The output level where average variable cost equals marginal cost is units.

Answer 1

Ans) Basics÷

Total cost = fixed cost + variable cost

Average total cost = total cost ÷ quantity

Marginal cost = change in total cost ÷ change in quantity = first derivative of total cost function.

d(nq)/dq = nq^n-1

^{@ Average Cart = Total Cost 1. Aug Cast = 0.39.?= 692 +909 +100 18 ② 5 0.3q;? – 697 +90+_100 G Ⓡ New, put q = 18 , to get value of avg.cost at q 18 Aug cost - 0.3018)2 – (18) +90 + 100 = 97.2 - 108 + 90 +5.56 = 192.76 – 108 = 84.76 Marginal Cost es derivative of tal cost function MC- d (0.393 – 692 +902_to) -(3x0.3.2012) - (2x6xq2) +(90) to = 0.992 – 129 +90 = ☺ now, pul q = 18, to get value of MC at q =18 MC = 0.9 (18)– 12x18 +90 = 2916-216790 MC = 165.6}

^{③ Cost Total cost = Fixed cost t Variable TC = 0.393 - 692 +9oqt log. Ес Cas it depends upon_Q) Vc = 0.393 – 694 +909 AIRE LES O Baysia, 692 +904 = gejag - Page Page LAVC = 0.342–69 +90 — 3 Now, aquating ☺ and 3_ 0.992—129 +90 = 0:39+ – 67 +90. 0.994–0.392 = –67 +129 +76-26 0.6q² = 6 0.69 = 6 9,- 10 Tome At Q=10, AVC = MC}