1. Lectures in Microeconomics-Charles W. Upton Solving the Problem C = 5 + 10q 2

2. Solving the Problem A Problem C = 5 + 10q 2 Find TC, AC, and MC when q=10 Find where MC = AC What level of output minimizes AC? When is MC = 60?

3. Solving the Problem Finding TC, AC and MC (q=10) C = 5 + 10q 2 TC= 5+10(10) 2 TC= 5 +10 (100) = 1005

4. Solving the Problem Finding AC C = 5 + 10q 2

5. Solving the Problem Finding AC C = 5 + 10q 2

6. Solving the Problem Finding AC C = 5 + 10q 2

7. Solving the Problem Finding AC C = 5 + 10q 2

8. Solving the Problem Finding MC C = 5 + 10q 2

9. Solving the Problem Finding MC C = 5 + 10q 2 The derivative of ax 2 + bx + c is 2ax+b

10. Solving the Problem Finding MC C = 5 + 10q 2 The derivative of ax 2 + bx + c is 2ax+b MC = 20q MC = 200

11. Solving the Problem Find where MC = AC C = 5 + 10q 2

12. Solving the Problem Find where MC = AC C = 5 + 10q 2 MC = 20q

13. Solving the Problem Find where MC = AC C = 5 + 10q 2 MC = 20q

14. Solving the Problem Find where MC = AC C = 5 + 10q 2 10q

15. Solving the Problem The Last Step C = 5 + 10q 2 Find where MC = AC

16. Solving the Problem Minimizing AC C = 5 + 10q 2

17. Solving the Problem Minimizing AC C = 5 + 10q 2

18. Solving the Problem Method I C = 5 + 10q 2

19. Solving the Problem Method I C = 5 + 10q 2

20. Solving the Problem Method I C = 5 + 10q 2

21. Solving the Problem Method I C = 5 + 10q 2

22. Solving the Problem Method II C = 5 + 10q 2

23. Solving the Problem When is MC = 60 C= 5+10q 2 When is MC = 60?

24. Solving the Problem When is MC = 60 C= 5+10q 2 When is MC = 60? MC = 20q 20q = 60 q = 3

25. Solving the Problem A Tabular Solution C = 5 + 10q 2 Compute TC, AC, and MC when q=10 Find where MC = AC What level of output minimizes AC? When is MC = 60?

26. Solving the Problem A Tabular Solution Left for you to do

27. Solving the Problem End ©2004 Charles W. Upton