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Consider the following Total Cost (TC) function:
Suppose TC= 200Q^2 + 100 Q + 100 where Q= quantity of output
a) Define the mc(marginal cost). Derive the mc using the TC function above. Show explain your work.
b) Determine the value of Q at which MC is at minimum. How did you arrive at the equation you got? Explain briefly steps you followed
c) Define AC (average cost). write the equation for AC using the TC function above. Determine the value of Q at which ac is minimum.
d) Now set MC=AC and solve for Q. show your work. Is this value of Q same as what you got in (c) if so, why?
e) Find the minimum value of TC function above. show your work.
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