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Question
If the total cost function is given by `C = x + 2x^3 - 7/2x^2`, find the Marginal Average Cost function (MAC).
Solution
Given, `C(x) = x + 2x^3 - 7/2x^2`
MAC = `d/dx(AC)`
Average cost (AC) = `(C(x))/x`
= `(x + 2x^3 - 7/2x^2)/x`
= `1 + 2x^2 - 7/2x`
MAC = `d/dx(AC)`
= `d/dx(1 + 2x^2 - 7/2x)`
= `4x - 7/2`
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