3. The total cost of production of staplers is given by the following: TC = 100...

Question

Question

3. The total cost of production of staplers is given by the following: TC = 100 + 2q + 4q2 Average total cost is minimized at

business economics

Answer 1

Answer #1

Answer : Option D is correct. Average total cost is equal to 25 units .

C = 100+2q+4q²

AC = 100/q +2+4q or 100q^-1 +2+4q

Derivate of Average cost =0

-100q^-2 +4 = 0

4 =100q^-2

q² = 100/4 = 25 units

^q

Answer 2

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