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average and the marginal cost curves

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The long-run total cost function for a firm producing skateboards is:
TC = q3 - 40q2 + 430q
where q is the number of skateboards per week.
a. What is the general shape of this total cost function?
b. Calculate the average cost function for skateboards. What shape does the graph of this
function have? At what level of skateboard output does average cost reach a minimum?
What is the average cost at this level of output?
c. Calculate the marginal cost and show that this marginal cost curve intersects average
cost at its minimum.
d. Graph the average and the marginal cost curves for skateboard production.

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Solution Summary

Average and the marginal cost curves are highlighted. The average and marginal cost curves are graphed.

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Answer:
Given that,

(a) If we look at the equation we can find that the equation assist towards a linear curve for the total cost. So the shape of the total cost function is linear.
(b) As we ...

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