Unformatted text preview: Q. The Total Cost function is given by: + , 6 Q 18 Q 6 Q Q TC 2 3 . . . a. Plot the Total Cost function from zero units of output to five units of output. (Hint: Use graph paper if you have it). b. Does the Total Cost function ever slope downward? Or is it strictly increasing? c. Now find the Marginal Cost function by taking the derivative of the Total Cost function with respect to the quantity of output that the firm produces. d. Plot the Marginal Cost function from zero units of output to five units. e. Does the Marginal Cost function ever slope downward? Or is it strictly increasing? f. If the Total Cost function never slopes downward, then why does the Marginal Cost function slope downward over some ranges of output? Page 22...
View Full Document
This note was uploaded on 12/29/2011 for the course ECO 311 taught by Professor Willis during the Fall '10 term at SUNY Stony Brook.
- Fall '10