Hello, please help me. I just can't seem to figure this out

Suppose a total cost function is given by TC=0.01Q^{2}+5Q+100, where TC is total cost (£'s) and Q is output (units). Find the output level that minimises average total cost (ATC)

Printable View

- August 12th 2012, 07:09 AMJames127Application of business calculus
Hello, please help me. I just can't seem to figure this out

Suppose a total cost function is given by TC=0.01Q^{2}+5Q+100, where TC is total cost (£'s) and Q is output (units). Find the output level that minimises average total cost (ATC) - August 12th 2012, 07:18 AMProve ItRe: Application of business calculus
- August 12th 2012, 07:31 AMJames127Re: Application of business calculus
Yes, but the part that confuses me is that:

ATC = TC/Q

=0.01Q+5+100/Q

Where can you go from there with 100/Q?

Or am I confusing something that should be a lot simpler... - August 12th 2012, 07:33 AMProve ItRe: Application of business calculus
I assumed that the function TC given was the Average Total Cost.

If ATC = TC/Q as you believe, then write 100/Q as 100Q^(-1). You should know how to differentiate a function of the form ax^n. - August 12th 2012, 07:37 AMskeeterRe: Application of business calculus
total cost,

average total cost**per unit**,

find , and use the first derivative test to determine the value of that minimizes