A firm has an average cost function A(q)=125q+q216−4. where q is the firm′s output. Determine the level of output for average costs are minimum. Hence determine the range of values for which average costs are decreasing. What part of the decreasing range is practically feasible? (iv) Write an equation for the total cost function. Hence calculate the level of output for which total costs are minimum.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter3: Functions
Section3.2: Domain And Range
Problem 61SE: The cost in dollars of making x items is given by the function Cx)=10x+500. a. The fixed cost is...
icon
Related questions
Topic Video
Question

A firm has an average cost function A(q)=125q+q216−4. where q is the firm′s output.

Determine the level of output for average costs are minimum.

Hence determine the range of values for which average costs are decreasing.

What part of the decreasing range is practically feasible? (iv) Write an equation for the total cost function.

Hence calculate the level of output for which total costs are minimum.

Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Optimization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
College Algebra
College Algebra
Algebra
ISBN:
9781337282291
Author:
Ron Larson
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning