Discuss the the minimisation rule.

      

Discuss the the minimisation rule.

  

Answers


Martin
the minimization rule is that the derivative of the function to be minimised must be equal to zero. It follows that the value the value of output (Q) that minimises average cost (AC) can be obtained by taking the first derivative of the AC function and setting it equal to zero and solving for Q.

dq.png

Thus, the level of output that minimises average cost is 5 units
marto answered the question on April 17, 2019 at 05:40


Next: Give the steps you would use to find and replace the occurrence of a particular word in Microsoft Word.
Previous: The production manager of Kemu ltd Company, is concerned abut the apparent fluctuation in efficiency and wants to determine how labour costs (in Sh.) are...

View More Production Economics Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions