If the total cost function is TC = Q3 - 6Q2 + 14Q + 75, at what output is the AVC = MC?
What will be an ideal response?
MC intersects AVC at its minimum so the answer can be obtained by taking the first derivative of the AVC which is Q2 - 6Q + 14 and setting it equal to zero. The derivative is 2Q - 6 so 2Q - 6 = 0 and Q = 3.
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