The average cost function for skateboards is given by: AC = (15)^2 - 30(15) + 350 = 225 - 450 + 350 = 125. The average cost at the minimum level of output is $125 per skateboard. The marginal cost function for skateboards is given by: MC = 3(15)^2 - 60(15) + 350 = 675 - 900 + 350 = 125 So, at q = 15, MC = AC = 125. this marginal cost curve intersects average cost at its minimum value. Draw and label the graph showing the average and marginal cost curves for skateboard production.
The average cost function for skateboards is given by: AC = (15)^2 - 30(15) + 350 = 225 - 450 + 350 = 125. The average cost at the minimum level of output is $125 per skateboard. The marginal cost function for skateboards is given by: MC = 3(15)^2 - 60(15) + 350 = 675 - 900 + 350 = 125 So, at q = 15, MC = AC = 125. this marginal cost curve intersects average cost at its minimum value. Draw and label the graph showing the average and marginal cost curves for skateboard production.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter7: Proudction Costs
Section: Chapter Questions
Problem 17SQ
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The average cost function for skateboards is given by:
AC = (15)^2 - 30(15) + 350
= 225 - 450 + 350 = 125.
The average cost at the minimum level of output is $125 per skateboard.
The marginal cost function for skateboards is given by:
MC = 3(15)^2 - 60(15) + 350
= 675 - 900 + 350 = 125
So, at q = 15, MC = AC = 125.
this marginal cost curve intersects average cost at its minimum value.
Draw and label the graph showing the average and marginal cost curves for skateboard production.
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