Asked by sudia
.1 Given the cost function of a firm as: C = 128 – 6Q + 2Q3 + 3Q2, Compute the following
A. TFC
B. TVC of producing 4 units
C. AVC of producing 4 units
D. ATC of producing 4 units
E. MC of producing the 4th unit
A. TFC
B. TVC of producing 4 units
C. AVC of producing 4 units
D. ATC of producing 4 units
E. MC of producing the 4th unit
Answers
Answered by
oobleck
A. clearly, the fixed cost is 128
TVC(q) = 2q^3 + 3q^2 - 6q so evaluate at q=4:
B. TVC(4)
C. TVC(4)/4
D. (TFC+TVC(4))/4
E. MC = d/dq TVC = 6q^2+6q-6 at q=4
TVC(q) = 2q^3 + 3q^2 - 6q so evaluate at q=4:
B. TVC(4)
C. TVC(4)/4
D. (TFC+TVC(4))/4
E. MC = d/dq TVC = 6q^2+6q-6 at q=4