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)
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)
total cost,
$\displaystyle C = 0.01Q^2 + 5Q + 100$
average total cost per unit,
$\displaystyle \bar{C} = 0.01Q + 5 + \frac{100}{Q}$
find $\displaystyle \frac{d\bar{C}}{dQ}$ , and use the first derivative test to determine the value of $\displaystyle Q$ that minimizes $\displaystyle \bar{C}$