Given the following equation for a firm’s average cost (AC, i.e. the cost per unit of output (Q):\n AC = 60 – 16Q + 2Q²\n
Given the following equation for a firm’s average cost (AC, i.e. the cost per unit of output (Q):
\r\nAC = 60 – 16Q + 2Q²
\r\n(a) At what output is AC at a minimum?
\r\n(b) Use the second derivative test to prove that this is a minimum not a maximum.