Find average cost function and find output level

Assignment Help Business Economics

Reference no: EM131091701

The long-run total cost function for a firm producing skateboards is: TC = q^2 - 45q^2 + 900q, where q is the number of skateboards per week. MC = 3q^2 - 90q + 900. a) Find the average cost function and find the output level that minimize the average total cost. What is the minimum average total cost? b) Graph average cost and marginal cost cuves to show that marginal cost curve intersects the average cost curve at its minimum value c) Graph the total cost curve and describe the general shape of its total cost curve (don't need to graph)

Reference no: EM131091701

Questions Cloud

Which is the least competitive : The monopolistic competitor always makes a profit in the short run

Developing job and person description forms : The report should light on the process of recruitment and selection of the employees required for a data management company DataCo the company setting new office in Singapore.

Lower cost in terms of national welfare : “A subsidy may provide import-competing producers the same degree of protection as tariffs or quotas but at a lower cost in terms of national welfare.” Discuss – in what sense is this statement correct? In what sense might it not be correct?

Produced according to the production function : Frisbees are produced according to the production function: q= 2K + L where q=output K=capital input per hour L=labor input per hour a) If K=10, how much L is needed to produce 100 Frisbees per hour? What is the RTS along this isoquant? Explain why t..

Find average cost function and find output level : The long-run total cost function for a firm producing skateboards is: TC = q^2 - 45q^2 + 900q, where q is the number of skateboards per week. MC = 3q^2 - 90q + 900. Find the average cost function and find the output level that minimize the average to..

What you know about swot to come up with a plan : Use the information from your policy planning interviews and what you know about SWOT (use this table for more info-- http://www.umt.edu/it/strategicplan/swot.php ) to come up with a plan using your existing IT infrastructure to make your own plan..

Yield the rate of return on the incremental investment : Alternative X has a first cost of $5 million and an annual maintenance cost of $200,000. Alternative Y has a first cost of $7 million, a maintenance cost of $40,000 and periodic expenditures of $100,000 every five years. If both alternatives have inf..

Ceo of malaysia airlines : The CEO of Malaysia Airlines said on 6 April 2016 that the carrier recorded a profit in February, Its first positive monthly results in years, and is on track to return to the black (profitable) by 2018.

Undesired decrease in aggregate expenditures : Let's say the Fed expects an undesired decrease in aggregate expenditures this year. In order to offset that decrease, the Fed should:

User Account

All Pages