The cost function for Acme Laundry is: TC(q)=10+10q+q^2 so its marginal cost function is: MC(q)=10+2q where q is tons of laundry cleaned. Derive the firm's average cost and average variable cost curves. What q should the firm choose so as to maximize its profit if the market price is p? How much does it produce if the competitive market price is p = 50? What would it look like in excel?
The cost function for Acme Laundry is:
TC(q)=10+10q+q^2
so its marginal cost function is:
MC(q)=10+2q
where q is tons of laundry cleaned. Derive the firm's average cost and
What would it look like in excel?
Introduction:
In economics, the marginal cost of production is the difference in total production costs that occurs from developing or manufacturing one more unit. To determine the marginal cost, divide the change in production expenses by the change in quantity. The goal of marginal cost analysis is to figure out when an organization may reach economies of scale in order to improve productivity and overall operations. If the marginal cost of producing one extra unit is less than the per-unit pricing, the producer can earn a profit.
The marginal cost of production is a concept in economics and management accounting that is commonly used by manufacturers to determine the best level of output. The cost of adding one extra unit to a manufacturing schedule is something that many manufacturers consider.
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