For the multiproduct cost function C(Q₁,Q₂)= 100 + 2Q₁Q₂ + 4Q₁²,what is the marginal cost function for good one? A) MC₁ = 2Q₂ + 4Q₁ − Q₂². B) MC₁ = 2Q₂ + 8Q₁. C) MC₁ = 100 + 2Q₁Q₂ + 4Q₁². D) MC₁ = 4Q₁² − 2 Q₂².

Question

Quizplus · Accepted Answer

The marginal cost function for good one is obtained by taking the partial derivative of the total cost function with respect to Q₁. This results in 2Q₂ + 8Q₁, which matches option B.

For the Multiproduct Cost Function C(Q1,Q2)= 100 + 2Q1Q2

For the Multiproduct Cost Function C(Q₁,Q₂)= 100 + 2Q₁Q₂