1. Lectures in Microeconomics-Charles W. Upton Mathematical Cost Functions(2) C= 10+20q+4q 2

2. Mathematical Cost Functions(2) A Problem C= 10+20q+4q 2

3. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10

4. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10 Find where MC = AC

5. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10 Find where MC = AC What level of output minimizes AC?

6. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10 Find where MC = AC What level of output minimizes AC? When is MC = 60?

7. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10 TC= 10+20(10)+4(10) 2

8. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute TC, AC, and MC when q=10 TC= 10+20(10)+4(10) 2 TC= 10+200+400 = 610

9. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute AC

10. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute AC

11. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute AC

12. Mathematical Cost Functions(2) C= 10+20q+4q 2 Compute AC

13. Mathematical Cost Functions(2) C= 10+20q+4q 2 The derivative of ax 2 + bx + c is 2ax+b

14. Mathematical Cost Functions(2) C= 10+20q+4q 2 The derivative of ax 2 + bx + c is 2ax+b MC = 8q + 20 MC = 100

15. Mathematical Cost Functions(2) C= 10+20q+4q 2 Find where MC = AC MC = 8q+20

16. Mathematical Cost Functions(2) C= 10+20q+4q 2 Find where MC = AC MC = 8q+20

17. Mathematical Cost Functions(2) C= 10+20q+4q 2 Find where MC = AC MC = 8q+20

18. Mathematical Cost Functions(2) C= 10+20q+4q 2 Find where MC = AC

19. Mathematical Cost Functions(2) C= 10+20q+4q 2 What level of output minimizes AC?

20. Mathematical Cost Functions(2) C= 10+20q+4q 2 What level of output minimizes AC?

21. Mathematical Cost Functions(2) C= 10+20q+4q 2 What level of output minimizes AC?

22. Mathematical Cost Functions(2) C= 10+20q+4q 2 What level of output minimizes AC? MC = AC at the minimum of AC

23. Mathematical Cost Functions(2) C= 10+20q+4q 2 When is MC = 60? MC = 8q +20 8q + 20 = 60 8q = 40 q = 5

24. Mathematical Cost Functions(2) End ©2003 Charles W. Upton