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Math Help - Total Cost Funtion

  1. #1
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    Total Cost Funtion

    I'm newbie in economics and its really not my thing, anyways as the title says i'm having problem with this question plz help!

    Total Cost Function

    C = x^2/25 + 3x + 200
    (i) Expression of average cost & Marginal cost
    (ii) Evaluate their value at an output of 25 units.

    Step by step solution would be preferred for better understanding

    Thank you!
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  2. #2
    Ond
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    (i) If the cost function is C, then the average cost function is C/X. So in your example where C = x^2/25 + 3x + 200, the average cost (AC) will be C/X = AC = (x^2/25 + 3x + 200)/X = x/25 + 3 + 200/x

    (ii) To find the marginal cost function you have to differentiate the cost function with respect to x. This will yield 2x/25 + 3.

    (iii) the AC at 25 units: 25/25 + 3 + 200/25 = 1 + 3 + 8 = 12. The MC at 25 units: 2*25/25 + 3 = 2 + 3 = 5.

    Regards.
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