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Problem

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Textbook Expert
Textbook ExpertVerified Tutor
19 Nov 2021

Given information

1.  is the cost of producing   units of a commodity

2. Average cost per unit is .

3. Average cost reaches minimum value

Step-by-step explanation

Step 1.

We have

Now when we have

 

implies having a critical value at

Therefore for a local minima of we can state from (1)  which is the marginal cost of an unit is same as which is the average cost. 

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