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,
Average Cost (AC) is the amount of cost generated per unit. In other words,
In this section, we would want to find the quantity , which minimizes cost and average cost. To minimize cost, we would want to solve for:
To minimize average cost, we would want to solve for:
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Intro Lesson
Marginal Cost, and Maximizing Cost & Average Cost Overview:
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1.
Finding & Minimizing the Cost
Given the following information, find the marginal cost and the value of which minimizes the cost: -
2.
Finding & Minimizing the Average Cost
Given the following information, find the marginal average cost and the value of which minimizes the average cost:
