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.
Determine the output level where marginal costs are minimized.
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VC = .05Q3 - 5Q2 + 500Q , marginal cost is the incremental change in variable cost
Marginal cost function is obtained by ...
First order derivative approach used to derive optimal quantity by minimizing marginal cost function