i dont understand derivatives i know how to calculate point price elasticity but thats only because i know its change in -b x P/Q and not because i understand how derivatives work. please dumb it down for me.
i have a mid sem exam on Wednesday and would appreciate any help. also why is average total cost 8/q + 2Q. i understand 8 is the fixed cost and therefore 8/quantity makes average fixed cost. Likewise 2Q^2/Q makes average variable cost but why is the square sign gone. thanks everyone who can help i 100% appreciate any effort.
Consider the following algebraic example:
TC = 8 + 2Q^2
Calculate FC, VC, ATC and MC.
FC = 8
VC = 2Q^2
ATC = 8/Q + 2Q
= 4Q (slope of TC curve)