Babydrink is a monopolist due to its patent in infant formula. The total cost for production in dollars is given by C(q) = 24q² + 600q +9600. a) What is the fixed cost? b) Find a function that gives the marginal cost. c) Find a function that gives the average cost. d) Find the efficient scale (that minimizes the average cost). e) Verify it is the most efficient not the least efficient.

Babydrink is a monopolist due to its patent in infant formula. The total cost for production in dollars is given by C(q) = 24q² + 600q +9600. a) What is the fixed cost? b) Find a function that gives the marginal cost. c) Find a function that gives the average cost. d) Find the efficient scale (that minimizes the average cost). e) Verify it is the most efficient not the least efficient.

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Babydrink is a monopolist due to its patent in infant formula. The total cost for
production in dollars is given by C(q) = 24q2 + 600q +9600.
a) What is the fixed cost?
b) Find a function that gives the marginal cost.
c) Find a function that gives the average cost.
d) Find the efficient scale (that minimizes the average cost).
e) Verify it is the most efficient not the least efficient.

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