{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Section 4.5 Example problem PC Version

Section 4.5 Example problem PC Version - Example 1 The...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Example 1. The average cost of producing q items is given by the function . From this determine each of the following: a.The total cost equation C(q). b. The marginal cost (MC or C’) b.Find the lowest possible average cost by using the 1 st derivative of the average cost. c.Find the lowest possible average cost by finding where average cost is equal to marginal cost. a ( q ) = q 2 - 14 q + 1000 Answer nsider the “average cost equation” given on page 196, but solve it for “cost”: a ( q ) = C ( q ) q Multiplying both sides of the equation by q yields… Picture 11 Picture 12 C ( q ) = q a ( q ) C ( q ) = q a ( q ) = q q 2 - 14 q + 1000 ( 29 = q 3 - 14 q 2 + 1000 q (Hit any key or click mouse to continue)
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
(Hit any key or click mouse to continue) Find the marginal cost. Remember that MC=C’ C ( q ) = q 3 - 14 q 2 + 1000 q Taking the 1 st derivative yields…. C '( q ) = 3 q 2 - 28 q + 1000 o find the minimum average cost we can take the 1 st derivative of the average cost function. a ( q ) = q 2 - 14 q + 1000 Taking the 1 st derivative yields… a '( q ) = 2 q - 14 Next we set this to 0 and solve.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern