Show mathematically that the MC curve intersects the AVC curve and the AC curve at the minimum point. MC=2/3y AVC=y/3 AC...
Show mathematically that the MC curve intersects the AVC curve and the AC curve at the minimum point.
MC=2/3y
AVC=y/3
AC=y/3+6/y
Homework Answers
To find the Minimum point of AVC and AC, differentiate them and equate to zero.
dAVC/dy= 1/3=0
So AVC is minimum at y=0
AVC at y=0 is 0
dAC /dy= 1/3-6/y^2=0
1/3= 6/y^2
y^2= 18
y=√18= 4.243
AC is minimum at y= 4.243
AC at y=4.243 is 4.243/3 +6/4.243= 2.828
Now check the value of MC at y=0 and y= 4.243
MC=0/3= 0 = AVC when y=0
MC= 2*4.243/3= 2.828 =AC when y=4.243
So MC intersect AVC and AC at the minimum point
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Show mathematically that the MC curve intersects the AVC curve and the AC curve at the minimum point. MC=2/3y AVC=y/3 AC...
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to figure out MC, AC and AVC dont you have to enter values for y to...
to figure out MC, AC and AVC dont you have to enter values for
y to get the points for plotting?
please show math convertions step by step
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to figure out MC, AC and AVC dont you have to enter values for
y to get the points for plotting?
please show math convertions step by step
part B: what level of output should the firm choose so as to
maximize its profit it the market price is P? how much does it
produce if the competitive market price is p=50?
4. The cost function for Acme Laundry, where y is tons of laundry cleaned, is given by C(y)...
1. Consider the following cost curve diagram for an airline (MC is marginal cost, AVC is average variable cost, and AC is full average cost). Quantity is measured in number of passengers. MC AC AVC 600 700 800 1000 a) What is the minimum price where a new airline would enter the industry (2) b) If price is $400, what are profits? (2) c) Consider an airline that is in business. What is the minimum price where the airline would...
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2. We say that two curves intersect orthogonally if they intersect and their tangent lines are orthogonal at each point in the intersection. For example, the curve y = 0 intersects the curve x2 + y2-1 orthogonally at (-1,0) and (1,0). Let H be the set of curves y2b with b ER. (a) Prove that the tangent line of each curve in H at a point (r, y) with y / 0 has slope (b) Let y -f(x) be a...
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