The weekly total cost function associated with manufacturing the Pulsar 25 color console television is given by . What is the marginal average cost function ?

Question

The weekly total cost function associated with manufacturing the Pulsar 25 color console television is given by  . What is the marginal average cost function  ?

Quizplus · Accepted Answer

The marginal average cost function can be found by taking the derivative of the total cost function with respect to the quantity (number of units produced), and then dividing that by the quantity.

Taking the derivative of the total cost function, we get:
MC(q) = 2q + 25

Dividing that by the quantity, we get:
MAC(q) = (2q + 25)/q

Simplifying this expression, we get:
MAC(q) = 2 + (25/q)

Therefore, the correct answer is B.

The Weekly Total Cost Function Associated with Manufacturing the Pulsar