00:01
Okay, so we are basically going to be looking at a scenario given that the cost function is cy is equal to 10 y squared plus a thousand.
00:16
So the cost function is 10 y squared plus a thousand.
00:22
So the question requires of us to identify at what output the average cost is minimized.
00:30
So we want to look at where ac is minimized.
00:37
All right.
00:40
So basically to answer this, we might just need to look into the cost function as we have known.
00:49
If you look at the cost curves, rather.
00:52
Right.
00:56
We just go back to the basic analysis of the average cost curve as it relates to the marginal cost curve.
01:04
So there we go, marginal cost curve as well as the average cost curve.
01:09
So the question is, what is the output at which the average cost is, the average costs are minimized? so the average cost is obviously minimized where the mc meets the ac right here...