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

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