Question

TC=50+16 Q -2 Q2+0.2 Q3
a.plot this curve for quantites 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 term of decreasing,constant, and increasing marginal costs.

Answer 1

Q TFC TVC ATC AFC VC TC MC
1 50.00 14.20 64.20 50.00 14.20 64.20 14.20
2 50.00 26.60 75.60 25.00 12.80 37.80 11.40
3 50.00 35.40 85.40 16.67 11.80 28.47 9.80
4 50.00 44.80 94.80 12.50 11.20 23.70 9.40
5 50.00 55.00 105.00 10.00 11.00 21.00 10.20
6 50.00 67.20 117.20 8.33 11.20 19.53 12.20
7 50.00 82.60 132.60 7.14 11.80 18.94 15.40
8 50.00 102.40 152.40 6.25 12.80 19.05 19.80
9 50.00 127.80 177.80 5.56 14.20 19.76 25.40
10 50.00 160.00 210.00 5.00 16.00 21.00 32.20