Derive the marginal cost function


Question:

Cost functions of private car use (use of road infrastructure)

Road's average speed of traffic (v, km/h) depends on traffic volume (q, vehicles/h) as follows:

v = 50 - q/100

Average travel cost (c, EUR/h) is a function of average speed v such as
c = 0,5(3 + 200/v)

a) What is the function of total cost C for road use?

b) Derive the marginal cost function

c) What is the average cost c and marginal cost MC at traffic volume q = 500?

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Microeconomics: Derive the marginal cost function
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