How do you plot AFC, AVC and MC cost curves for the total cost function TC = 100 + 40Q - 15Q^2 + 5Q^3?
TC = 100 + 40Q - 15Q(squared) + 5Q (to the third power), calculate the
a. average fixed cost function (AFC)
b. average variable cost function (AVC)
c. marginal cost function (MC)
Draw a diagram with all three curves plotted on it.
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TC = 100 + 40Q - 15Q2 + 5Q3, calculate the
a. ...
Solution Summary
This solution shows how to determine the average fixed cost function, the average variable cost function and the marginal cost function in an attached Word document. The three curves are plotted using Excel.
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