WE assume that when a firm hires additional workers, the marginal physical product of labor will decrease. Why? Because more people will be added in a certain firm. Thus the resources will be divided to more people now and the money will also be divided to them
I bought an apartment with my boyfriend last year because we had been dating for 4 years and he proposed. In order to prepare, we saved up our money, asked the bank for their opinion on the best coarse of action financially, and we tried to decide how much of our savings we should use without being irresponsible. (This is just an example. I am 15 and will be forever alone but yea this is what I would do anyways)
Answer:
the correct answer is $150
Explanation:
TC=500 + 150q - 20q^2 + q^3
AVC=(150Q-20Q^2+Q^3)/Q
=150-20Q+Q^2
When AVC is at its minimum means that the marginal cost( CM) is igual to AVC, so we could consider this analysis:
CM= d(TC)/dq =150-40Q+3Q^2
CM=AVC
150-40Q+3Q^2=150-20Q+Q^2
Join similar terms:
150-150-40Q+20Q+3Q^2-Q^2=0
0-20Q+2Q^2=0
Q(-20+2Q)=0
Q_1=0 y Q_2=20/2=10
with q_1 with q_2
150-40*0+3*0=150-20*0+0 150-40*10+3*10^2=150-20*10+10^2
$150=$150 150-400+300 =150-200+100
$50= $ 50
We have two solution if we assume that q=0 like the minimum then the results is $150.
f we assume that q=10 like the minimum then the results is $50.
