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Finding various costs at different output levels

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Given a cost function: TC = 100 + 6Q
Quantity range 1-10, complete table Q, FC, VC, TC, AFC, AVC, ATC, MC

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Solution Summary

The solution depicts the formulas to find out the values of Fixed cost, Variable Cost, Total Cost, Average Costs and Marginal Costs with the help of given function.

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Please refer attached file for better clarity of tables and formulas.

Solution:
If we analyze total cost function, we find that it contains two parts.
First is 100 i.e. fixed part. It is not dependent on Q. This represents fixed costs i.e. FC
Second part is 6*Q. It is a variable part i.e. it ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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