How do you get the average variable cost and marginal cost of:
C(q)= 500 + 560q - 40q^2 + q^3
***(^2 is squared, ^3 is cubed)****
I'm trying to compare the price to the average variable cost to see if they should remain in business, but I can't figure out how to do work with multiple q's.
I get stuck at: 500/q + 560 - 40q + q^2 and don't know how to remove terms.
The condition is 170> Average variable cost of C(q)= 500 + 560q - 40q^2 + q^3. If it isn't then they should leave the market.
2007-08-08
09:08:32
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3 answers
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asked by
Antonio B
2
in
Social Science
➔ Economics
I understand how to do the MC and AVC, but I get stuck once I have it in the form Toot showed.
I need to evaluate whether compared to the market price of $170, if the company should stay in business or not in the short-term. My understanding is that if Price is Greater Than Average Variable Cost then they should stay in business. How do I do this though if I don't know Q?
2007-08-08
09:29:46 ·
update #1