Ed's construction company has the following short-run cost function: q³

Question

Ed's construction company has the following short-run cost function: q³ - 10q² + 36q.
a.What level of output will minimize the average cost? What is the AC at this point?
b.Does the production process indicate diminishing returns? How can you tell?

Quizplus · Accepted Answer

The Answer of Ed's construction company has the following short-run cost function: q³ - 10q² + 36q. a.What level of output will minimize the average cost? What is the AC at this point? b.Does the production process indicate diminishing returns? How can you tell?

Ed's Construction Company Has the Following Short-Run Cost Function: Q3