Results 1 to 5 of 5

Math Help - Application of business calculus

  1. #1
    Newbie
    Joined
    Aug 2012
    From
    London
    Posts
    2

    Application 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=0.01Q2+5Q+100, where TC is total cost ('s) and Q is output (units). Find the output level that minimises average total cost (ATC)
    Follow Math Help Forum on Facebook and Google+

  2. #2
    MHF Contributor
    Prove It's Avatar
    Joined
    Aug 2008
    Posts
    10,969
    Thanks
    1011

    Re: Application of business calculus

    Quote Originally Posted by James127 View Post
    Hello, please help me. I just can't seem to figure this out

    Suppose a total cost function is given by TC=0.01Q2+5Q+100, where TC is total cost ('s) and Q is output (units). Find the output level that minimises average total cost (ATC)
    You don't really need to use calculus. Do you know how to find the turning point of a Quadratic?
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Newbie
    Joined
    Aug 2012
    From
    London
    Posts
    2

    Re: 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...
    Follow Math Help Forum on Facebook and Google+

  4. #4
    MHF Contributor
    Prove It's Avatar
    Joined
    Aug 2008
    Posts
    10,969
    Thanks
    1011

    Re: 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.
    Follow Math Help Forum on Facebook and Google+

  5. #5
    MHF Contributor
    skeeter's Avatar
    Joined
    Jun 2008
    From
    North Texas
    Posts
    11,621
    Thanks
    426

    Re: Application of business calculus

    total cost,

    C = 0.01Q^2 + 5Q + 100

    average total cost per unit,

    \bar{C} = 0.01Q + 5 + \frac{100}{Q}

    find \frac{d\bar{C}}{dQ} , and use the first derivative test to determine the value of Q that minimizes \bar{C}
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Business application calculus thread 1?
    Posted in the Calculus Forum
    Replies: 16
    Last Post: August 7th 2011, 08:24 AM
  2. Business application Z-scores
    Posted in the Statistics Forum
    Replies: 1
    Last Post: July 14th 2011, 05:21 PM
  3. Business Application
    Posted in the Pre-Calculus Forum
    Replies: 4
    Last Post: April 5th 2010, 09:31 PM
  4. Business Application Problems
    Posted in the Calculus Forum
    Replies: 1
    Last Post: October 25th 2009, 04:52 PM
  5. Business Calculus
    Posted in the Calculus Forum
    Replies: 5
    Last Post: June 18th 2009, 04:15 AM

Search Tags


/mathhelpforum @mathhelpforum