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A firm faces the following Average Cost function:
AC=50q^-1 +30-1.5q+0.125q^2
Calculate the output level (q) which minimzies
a) Average Variable cost
How do i find this out if i don't know the amount of fixed cost?
b) Marginal cost
Total cost=50+30q-1.5q^2+0.125q^3
MC=30-3q+0.375q^2
0=30-3q+0.375q^2
how do you solve this? the quadratic formula doesn't seem to work
AC=50q^-1 +30-1.5q+0.125q^2
Calculate the output level (q) which minimzies
a) Average Variable cost
How do i find this out if i don't know the amount of fixed cost?
b) Marginal cost
Total cost=50+30q-1.5q^2+0.125q^3
MC=30-3q+0.375q^2
0=30-3q+0.375q^2
how do you solve this? the quadratic formula doesn't seem to work