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decreasing, constant and increasing marginal cost

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The economist for the Grand Corporation has estimated the company's cost function, using the times series data to be
TC=50+16Q-2Q2+0.2Q3

a. Plot this curve for quanties 1 to 10
b. Calculate the average total cost, average variable cost and marginal cost for these quantities, and plot them on another graph.
c. Discuss your results in terms of decreasing, constant and increasing marginal cost. Does Grand cost function illustrate all theses.

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Solution Summary

Discuss effects of decreasing, constant and increasing marginal costs.

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