Calculating Minimum average cost???

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Calculating Minimum average cost???

Suppose long run entry forces a firm to produce at the minimum average total cost. What level of output will Elliot Farms produce?

TC= 36+2Q + Q^2

So....wouldn't ATC= (36+2Q+Q2)/Q

Hence taking the derivitive with the quotitent rule....I get
ATC'= (q^2-36)/Q^2....so the critical numbers for would be 6, and -6...so the the level of output would be 6 in order to produce at minimum avg. total cost, correct??? Thanks!!

2007-03-27 19:28:03 · 3 answers · asked by tiner130 2 in Social Science ➔ Economics

3 answers

Ok my brain hurts now.. heheh

2007-03-27 19:48:50 · answer #1 · answered by Bella-El 6 · 0⤊ 0⤋

Absolutely!! Way to go!

2007-03-28 01:08:32 · answer #2 · answered by kool 2 · 0⤊ 0⤋

yes thats correct.

2007-03-28 07:02:09 · answer #3 · answered by ganapan7 3 · 0⤊ 0⤋