Concept explainers
Problems 25–26 involve the average cost of manufacturing a quantity q of a good, which is defined to be
Figure 4.89 shows the cost of production, C(q), as a function of quantity produced, q.
- (a) For some q0, sketch a line whose slope is the marginal cost, MC, at that point.
- (b) For the same q0, explain why the average cost a(q0) can be represented by the slope of the line from that point on the curve to the origin.
- (c) Use the method of Example 6 on page 218 to explain why at the value of q which minimizes a(q), the average and marginal costs are equal.
Figure 4.89
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Chapter 4 Solutions
Calculus: Single And Multivariable
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