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C(q)=q^3-3q^2+8q where C is the cost function and q is quantity of items Find eq

ID: 2886254 • Letter: C

Question

C(q)=q^3-3q^2+8q where C is the cost function and q is quantity of items Find equation for the average cost. Find equation for marginal cost. Determine where the marginal cost is equal to the average cost. C(q)=q^3-3q^2+8q where C is the cost function and q is quantity of items Find equation for the average cost. Find equation for marginal cost. Determine where the marginal cost is equal to the average cost. Find equation for the average cost. Find equation for marginal cost. Determine where the marginal cost is equal to the average cost.

Explanation / Answer

A) Average cost = C(q) / q

= q2 - 3q + 8

B) Marginal Cost = dC(q) / dq

= 3q2 - 6q + 8

C) Average cost = Marginal cost

q2 - 3q + 8 = 3q2 - 6q + 8

2q2 - 3q = 0

q(2q - 3) = 0

It will be equal at q = 3/2