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Economics: Total cost and average cost calculations.

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The cost function for a business is shown in the table below (where Q is the level of output):

Q (units) Cost
0 8
1 24
2 38
3 44
4 51
5 52
6 59
7 65
8 79
9 95
10 125

Calculate the (a) marginal cost and (b) the average total cost schedules.

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Solution Summary

The problem deals with estimating marginal cost and average cost from provided information.

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  • M. Sc., London South Bank University
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