Practicing derivatives: TC and MC
Consider the following total cost (TC) function we've been using a
lot this term:
TC = 196 + 147Q - 24Q2 + 2Q3
where Q = 1000s of units and TC = $1000s.
1. Calculate the formula for marginal cost: MC =
_________________________
2. Complete the marginal cost column in the table
below, and then plot the MC curve in the diagram to the right of the table.
Quantity
(1000s) |
Total
cost
($1000s) |
Marginal
cost
($) |
Average
total cost
($) |
| 0 |
196 |
--- |
--- |
| 1 |
321 |
|
321 |
| 2 |
410 |
|
205 |
| 3 |
475 |
|
158.33 |
| 4 |
528 |
|
132 |
| 5 |
581 |
|
116.2 |
| 6 |
646 |
|
107.67 |
| 7 |
735 |
|
105 |
| 8 |
860 |
|
107.50 |
| 9 |
1033 |
|
114.78 |
| 10 |
1266 |
|
126.60 |