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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

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