Suppose cost function of a firm is represented by C=Q³-12Q²+60Q a)find the output level where MC =AC b) find what happens to AC and MC when Q=3"
Added by Onyango E.
Step 1
MC is the derivative of the cost function with respect to Q. So, MC = 3Q² - 24Q + 60. AC is the cost function divided by Q. So, AC = Q² - 12Q + 60. Setting MC = AC, we get: 3Q² - 24Q + 60 = Q² - 12Q + 60. Show more…
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