Marginal cost, and minimizing cost & average cost  Derivative Applications
Marginal cost, and minimizing cost & average cost
Lessons
Notes:
Marginal Cost (MC) is the additional cost that is gained when you increase the unit by one. It is also the derivative of the cost function. In other words,
$MC=C'(q)$
Average Cost (AC) is the amount of cost generated per unit. In other words,
$AC(q)=\frac{C(q)}{q}$
In this section, we would want to find the quantity $q$, which minimizes cost and average cost. To minimize cost, we would want to solve for:
$MC=0$
To minimize average cost, we would want to solve for:
$AC'(q)=0$

1.
Marginal Cost, and Maximizing Cost & Average Cost Overview:

2.
Finding & Minimizing the Cost
Given the following information, find the marginal cost and the value of $q$ which minimizes the cost: 
3.
Finding & Minimizing the Average Cost
Given the following information, find the marginal average cost and the value of $q$ which minimizes the average cost: