Question

The total revenue and total cost function that faces firm a are: tr=30q tc=100 8q 0.01q^2 (note: q^2 is q-squared) what is firm's a marginal cost (mc)?

Answer 1

The marginal cost (MC) of firm A can be calculated by taking the derivative of its total cost function with respect to quantity (q). The derivative of the total cost function, tc=100q - 8q^2 + 0.01q^2, gives us the marginal cost function mc = 100 - 16q + 0.03q^2.

Step-by-step explanation:

To calculate the marginal cost (MC) of firm A, we need to find the derivative of the total cost function with respect to quantity (q). Taking the derivative of tc=100q - 8q^2 + 0.01q^2 will give us the marginal cost function. Here are the steps:

1. tc = 100q - 8q^2 + 0.01q^3
2. Take the derivative of tc with respect to q: mc = 100 - 16q + 0.03q^2

So, the marginal cost function for firm A is mc = 100 - 16q + 0.03q^2.