Explore BrainMass

Explore BrainMass

    Deriving marginal cost function using first order derivative

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A firm has determined that its variable costs are given by the following relationship:

    VC = .05Q3 - 5Q2 + 500Q
    where Q is the quantity of output produced. The average variable cost function: AVC = .05Q2 - 5Q + 500. Determine the marginal cost function.

    a. MC = .15Q2 - 10Q + 500

    b. MC = .15Q4 - 10Q3 + 500Q2

    c. MC = .05Q2 - 5Q + 500

    d. MC = .05Q4 - 5Q3 + 500Q

    © BrainMass Inc. brainmass.com December 15, 2022, 5:21 pm ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/deriving-marginal-cost-function-using-first-order-derivative-78531

    Solution Preview

    A firm has determined that its variable costs are given by the following relationship:
    VC = .05Q3 - 5Q2 + ...

    Solution Summary

    Using first order derivative how to get marginal cost function from average variable cost function.

    $2.49

    ADVERTISEMENT