P1: Economic Applications of Functions and Derivatives a. Sketch the graph of the short run total cost function TC=0.25g +20, for 9=0 to 9- 50; b. Find the marginal and average cost functions. Sketch their graphs. c. Explain in words why average cost is greater than marginal cost at all levels of output; d. How does the difference between marginal and average cost, MC - AC, behave as 9 increases without limit?
P1: Economic Applications of Functions and Derivatives a. Sketch the graph of the short run total cost function TC=0.25g +20, for 9=0 to 9- 50; b. Find the marginal and average cost functions. Sketch their graphs. c. Explain in words why average cost is greater than marginal cost at all levels of output; d. How does the difference between marginal and average cost, MC - AC, behave as 9 increases without limit?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 3CQQ
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Transcribed Image Text:P1: Economic Applications of Functions and Derivatives
a. Sketch the graph of the short run total cost function TC=0.25g +20, for
q=0 to 9 = 50;
b. Find the marginal and average cost functions. Sketch their graphs.
c. Explain in words why average cost is greater than marginal cost at all levels of
output;
d. How does the difference between marginal and average cost, MC-AC,
behave as 9 increases without limit?
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