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    Cost Function

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    1. For the following cost function, find AC
    TC = 20,000 + 10 Q

    2. For the following cost function, find AVC
    TC = 20,000 + 10 Q

    © BrainMass Inc. brainmass.com October 9, 2019, 7:48 pm ad1c9bdddf
    https://brainmass.com/economics/macroeconomics/cost-function-problem-129786

    Solution Preview

    1. For the following cost function, find AC
    TC = 20,000 + 10 Q
    The AC will be reduced as the total output increased. The more the product is produced, the lower the AC will be.

    2. For the following cost function, find AVC
    TC = 20,000 + 10 Q
    The AVC for this cost function is equal ...

    Solution Summary

    This solution is comprised of a detailed explanation and calculation to find AC and AVC for the given cost function.

    $2.19