Consider COst function: TC Q-S oO Margina cost critical Vaiue is: Q + SOC=

Question

Question

Answer 1

Answer #1

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Ans:

dTC MC=dQ = 3Q2 - 10Q +60

To find critical values, we have:

dTC MC = 20 = 3Q- 10Q +60 = 0

302 - 100 + 60 = 0

gives critical values:

NA.

Second order condition:

6 Q - 10 > 0 for Q > 0

This shows TC is convex.

Answer 2

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