Advertisements
Advertisements
Question
Average cost is minimum when:
Options
Marginal cost = marginal revenue
Average cost = marginal cost
Average cost = Marginal revenue
Average Revenue = Marginal cost
Advertisements
Solution
Average cost = marginal cost
APPEARS IN
RELATED QUESTIONS
A firm produces x tonnes of output at a total cost of C(x) = `1/10x^3 - 4x^2 - 20x + 7` find the
- average cost
- average variable cost
- average fixed cost
- marginal cost and
- marginal average cost.
Find the elasticity of demand in terms of x for the following demand laws and also find the value of x where elasticity is equal to unity.
p = (a – bx)2
Show that MR = p`[1 - 1/eta_"d"]` for the demand function p = 400 – 2x – 3x2 where p is unit price and x is quantity demand.
For the demand function x = `25/"p"^4`, 1 ≤ p ≤ 5, determine the elasticity of demand.
The total cost function y for x units is given by y = 3x`((x+7)/(x+5)) + 5`. Show that the marginal cost decreases continuously as the output increases.
Find the price elasticity of demand for the demand function x = 10 – p where x is the demand p is the price. Examine whether the demand is elastic, inelastic, or unit elastic at p = 6.
The cost function of a firm is C = x3 – 12x2 + 48x. Find the level of output (x > 0) at which average cost is minimum.
If demand and the cost function of a firm are p = 2 – x and C = -2x2 + 2x + 7 then its profit function is:
A company begins to earn profit at:
The demand function is always
