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  • Jun 1, 2012, 07:29 PM
    eparquet
    linear equation
    What is the linear costs equation, marginal costs, and average costs per 100 units for the following information: 12 units costs $445 and 50 units costs $1585
  • Jun 3, 2012, 06:29 AM
    ArcSine
    For the linear total cost relationship, note that you're given two observations in an (x, y) ordered pair form: (units, total costs at such units).

    From those two observations use the fact that for a linear, slope m = .

    The marginal cost function is simply the first derivative of the total cost function.

    From the total cost function C(q) you derived first (q = quantity units), the average cost function is

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