# Characteristics of cost functions: fixed, variable, average and marginal

Not what you're looking for?

Consider the following variable cost function (where Q = output):

VC = 200 * Q - 9 * Q^2 + 0.25 * Q^3

Fixed costs are equal to $150: FC = 150

A. Determine the total cost function.

B. Determine the (i) average fixed, (ii) average variable, (iii) average total, and (iv) marginal cost functions.

C. Determine the value of Q where the marginal cost function takes on its minimum value.

##### Purchase this Solution

##### Solution Summary

This solution analyzes the characteristics of cost functions: fixed, variable, average and marginal

##### Solution Preview

A. The total cost function is made up of fixed costs + variable costs. Based on the information provided above: TC (total cost) = FC + VC

TC = 150 + 200 * Q - 9 * Q^2 + 0.25 * Q^3

B.

Average fixed = fixed cost per ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

##### Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

##### SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

##### Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

##### Learning Lean

This quiz will help you understand the basic concepts of Lean.