Question

Ed's construction company has the following short-run cost function: 4q³ −49q² + 22q. For what quantity is average cost at its lowest?

Answer 1

The quantity at which average cost is at its lowest is approximately 0.33.

Step-by-step explanation:

To find the quantity at which average cost is at its lowest, we need to find the minimum point of the average cost function. The short-run cost function is given as 4q³ −49q² + 22q. To find the minimum, we can take the derivative of the cost function and set it equal to zero. Differentiating the cost function gives us 12q² - 98q + 22. Setting this equal to zero and solving for q gives us q = 0.33. Therefore, the quantity at which average cost is at its lowest is approximately 0.33.