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The total cost of producing Q units of a commodity is:

C(Q) = 4Q^2 + 40Q + 36 Q > 0

Show that the Q that minimizes the average cost A(Q) also is the Q where the marginal cost is equal to the average cost.

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This solution clarifies minimizing average cost.

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Answer:
Given that,
C(Q)=4Q^2+40Q+36
Or,
Average ...

Solution provided by:
Jayant Kumar, MBA
Education
  • MBA, Indian Institute of Finance
  • Bsc, Madras University
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