Explore BrainMass
Share

Explore BrainMass

    Average Total Cost (ATC)

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Suppose the long-run costs for ABC, Inc is represented by the following function:
    TC = 28,400,300 + 460,200Q, where C is total cost in dollars and Q is the number of products. (Show work)

    A. If Q = 500, what is average total cost?

    B. What is the marginal cost?

    C. If Q = 200, what is the average total cost?

    D. If the entire market is 1,000 prodcuts and if all firms have the same function, would a firm with a 50% market share have an advantage over a firm with a 20% market share?

    © BrainMass Inc. brainmass.com October 10, 2019, 1:05 am ad1c9bdddf
    https://brainmass.com/economics/output-and-costs/average-total-cost-atc-320230

    Solution Preview

    Suppose the long-run costs for ABC, Inc is represented by the following function:
    TC = 28,400,300 + 460,200Q, where C is total cost in dollars and Q is the number of products. (Show work)

    A. If Q = 500, what is average total cost?

    B. What is the marginal cost?

    C. If Q = ...

    Solution Summary

    Average Total Cost (ATC) is featured.

    $2.19