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    Transport economics, cost functions, total cost, and marginal cost

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    Cost functions of private car use (use of road infrastructure)

    Road's average speed of traffic (v, km/h) depends on traffic volume (q, vehicles/h) as follows:

    v = 50 - q/100

    Average travel cost (c, EUR/h) is a function of average speed v such as
    c = 0,5(3 + 200/v)

    a) What is the function of total cost C for road use?
    b) Derive the marginal cost function
    c) What is the average cost c and marginal cost MC at traffic volume q = 500?

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    Question about Transport economics, cost functions, total cost, marginal cost
    Cost functions of private car use (use of road infrastructure)

    Road's average speed of traffic (v, km/h) depends on traffic volume (q, ...

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