# Marginal cost, and minimizing cost & average cost

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**Finding & Minimizing the Cost**

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

Given the following information, find the marginal average cost and the value of $q$ which minimizes the average cost:

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###### Topic 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:

$AC'(q)=0$

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