What is the total cost, , of producing goods?
What is the minimum marginal cost? minimum MC = (Be sure you can say what the practical interpretation of this result is!)
At what production level is the average cost a minimum? What is the lowest average cost? minimum average cost =
Compute the marginal cost at . How does this relate to your previous answer? Explain this relationship both analytically and in words.
You can earn partial credit on this problem.