Suppose the cost function is C(Q)= 50 + Q − 10Q² + 2Q³.At 3 units of output,the marginal cost curve is: A) in the increasing stage. B) in the declining stage. C) at the minimum level. D) at the maximum level.

Question

Quizplus · Accepted Answer

The cost function is given as $C(Q) = 50 + Q^2 + 2Q^3$. The marginal cost (MC) is the derivative of the cost function with respect to Q, which is $MC = 2Q + 6Q^2$. At Q = 3 units, $MC = 2(3) + 6(3)^2 = 6 + 54 = 60$. Since the MC is derived from a polynomial where the highest power of Q is positive (indicating the cost increases at an increasing rate as Q increases), and the derivative $MC = 2Q + 6Q^2$ increases as Q increases, it indicates that at 3 units of output, the marginal cost curve is in the increasing stage.

Suppose the Cost Function Is C(Q)= 50 + Q −