The total cost function
A Firm has total cost function given by the following:
TC = 10000 + 7*Q - 100*Q2 + 2*Q3
Its marginal cost function is given by:
MC = 7 - 200*Q + 6*Q2.
a) Write down the following cost functions:
i. Total Fixed Cost (TFC)
ii. Total Variable Cost (TVC)
iii. Average Total Cost (ATC)
iv. Average Fixed Cost (AFC)
v. Average Variable Cost (AVC)
b) What is the Total fixed cost when Q = 100? And the Average fixed Cost when Q=100?
The total cost function is presented.
This answer includes:
- Plain text
- Cited sources when necessary