Supply Analysis in Monoploy Markets - page: 97

CFA Level I Economics
#1

Hi,

Can anyone help, how did CFA curriculum came to this equation:
Marginal cost is ΔTC/ΔQ = MC = 50 + 6Q

from this equation: TC = 20,000 + 50Q + 3Q2

Thanks so much.

#2

In a word: calculus.

MC=\frac{d}{dQ}\left(TC\right)=\frac{d}{dQ}\left(20,000 + 50Q + 3Q^2\right)=50+6Q
#3

Thanks so much! So, we have to learn basic calculus to solver this…

Have a great day.

#4

No, you don’t need to learn calculus.

If the total cost curve is given by TC = a + bQ + cQ2, then MC = b + 2cQ. However, I doubt that you’ll need to use that on the exam.

#5

thanks so much!