Question #42920

Suppose,the cost function of Firm-A is as follows:
C=5Q^3+3Q^2-2Q+500
Find marginal function and average function.

Expert's answer

C=5Q^3+3Q^2-2Q+500

Marginal cost function MC can be found as derivative of total cost function:

MC = C' = 15Q^2 + 6Q - 2

Average cost function ATC can be found as cost function divided by quantity:

ATC = C/Q = 5Q^2 + 3Q - 2 + 500/Q

Marginal cost function MC can be found as derivative of total cost function:

MC = C' = 15Q^2 + 6Q - 2

Average cost function ATC can be found as cost function divided by quantity:

ATC = C/Q = 5Q^2 + 3Q - 2 + 500/Q

## Comments

## Leave a comment