If TC =1000 Q – 30 Q2 + Q3, with MC = 1000 - 60Q +...

If TC =1000 Q – 30 Q² + Q³, with MC = 1000 - 60Q + 3Q ², then the quantity at which ATC is minimized is

a. 0

b. 15

c. 5

d. 10

Solutions

Expert Solution

Answer is 15 units

ATC = TC / Q

ATC = 1000 – 30 q + q²

ATC will be minimum when derivative of ATC is zero

= -30 + 2q = 0

2q = 30

Q = 15

Rahul Sunny answered 2 years ago

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