Total cost ??
The average cost per item to produce q items is given by a(q) = 0.5q2 – 2q + 3 for q > 0. What is the total cost C(q) for producing q items? What is the MC of producing q items? At what production level does MC = average cost? What is the significance of this point?
Originally Posted by ab32
The point at which the marginal cost equals the average cost is the point beyond which each additional unit increases the average cost of production (at least if the average cost drops with each additional unit initially).