Suppose a Firm's Total Cost Curve Is TC = Q²

question 175

Essay

Suppose a firm's total cost curve is TC = Q² + Q + 100.
a. Find the firm's marginal cost, average total cost, and average variable cost.
b. Use calculus to find the output level that minimizes average total cost.
c. Show that ATC = MC at this output level.
d. Show that this is the minimum ATC by examining the second derivative.

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Definitions:

Retrieve

The process of getting something back from a place where it was stored or from a condition of being inaccessible.

Point

A distinct detail, fact, or piece of information relevant to a discussion or analysis.

Material Misrepresentation

A false statement or omission of a fact that significantly impacts another party's decision-making in a contract or legal agreement.

Justifiable Reliance

A principle in contract law requiring that a party's reliance on another's representation or promise must be reasonable and justified for it to be legally actionable.