A firm's total cost function (in thousands of Naira) is $C(Q)=0.04Q^{3}-0.9Q^{2}+30Q+500$, where $Q$ is output in units. Determine the output level at which average cost equals marginal cost, and indicate whether the firm is experiencing economies of scale at that output.

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Output ≈ 23 units; at this output the firm is at the minimum average cost - economies of scale have just ended.

Neco Model Questions Vol1 2019 Economics Question 40

A firm's total cost function (in thousands of Naira) is \(C(Q)=0.04Q^{3}-0.9Q^{2}+30Q+500\), where \(Q\) is output in units. Determine the output level at which average cost equals marginal cost, and indicate whether the firm is experiencing economies of scale at that output.

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