Given that the total cost function is:
TC = 100Q-Q^2+1/3 Q^3
where Q = rate of output and TC = total cost
a. Determine the marginal and average cost functions.
b. Calculate the output level that minimizes average cost.
c. Calculate the output level that minimizes marginal cost.
a. Determine the marginal and average cost functions. SHOW WORK
TC = 100Q-Q^2 + 1/3 Q^3
MC=d(TC)/dQ= d(100Q-Q2 + 1/3 Q3)/dQ=100-2Q+Q^2 ...
Solution determines the marginal and average cost functions. It also determines the output levels which minimize average and marginal costs.