2
answers
5
watching
5,540
views
28 Sep 2019
A firm's total cost function is given by the equation TC = 4000 + 5Q + 10Q2 and marginal cost is given by the equation MC=5+20Q.
(A) Write an expression for each of the following cost concepts:
a. Total Fixed Cost
b. Average Fixed Cost
c. Total Variable Cost
d. Average Variable Cost
e. Average Total Cost
(B) Calculate the values of marginal cost and the costs in (a)-(e) above for Q=0,1,2,3.
(C) Determine the quantity that minimizes the average total cost. Demonstrate that the predicted relationship between marginal cost and average cost holds.
A firm's total cost function is given by the equation TC = 4000 + 5Q + 10Q2 and marginal cost is given by the equation MC=5+20Q.
(A) Write an expression for each of the following cost concepts:
a. Total Fixed Cost
b. Average Fixed Cost
c. Total Variable Cost
d. Average Variable Cost
e. Average Total Cost
(B) Calculate the values of marginal cost and the costs in (a)-(e) above for Q=0,1,2,3.
(C) Determine the quantity that minimizes the average total cost. Demonstrate that the predicted relationship between marginal cost and average cost holds.
syedazmath1627Lv10
3 Feb 2023
Nusrat FatimaLv10
28 Sep 2019
Already have an account? Log in
