a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate of output, and a, b and c are all positive parameters, show that average cost is always positive if and only if b^2 < 4ac and a >0.

a) If a business has a long-run cost (TC) function given by TC = aq^3 – bq^2 + ca where q = the rate of output, and a, b and c are all positive parameters, show that average cost is always positive if and only if b^2 < 4ac and a >0.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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