A firm's total cost function is C(x) = x³/3 − 5x²/2 + 6x + 15. The marginal cost is minimum at x equal to:
A firm's total cost function is C(x) = x³/3 − 5x²/2 + 6x + 15. The marginal cost is minimum at x equal to:
- A. 2.5
- B. 5
- C. 3
- D. 2
Answer: A) 2.5
Explanation: MC = C'(x) = x² − 5x + 6. To minimize MC, take derivative: MC' = 2x − 5 = 0 → x = 2.5. MC'' = 2 > 0, so minimum.
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