Answer to Question #266493 in Accounting for NADDy

Question

5Q^2+8Q+20

Find the

Total fix cost

Fixed cost

Marginal cost

Variable cost

Is the firm with the above cost function in the short-run or long-run

Answer 1

Solution:

Function: TC = 5Q² + 8Q + 20

1.). Total fixed cost = 20

2.). Fixed cost = 20

3.). Marginal cost = $\frac{\partial TC} {\partial Q}$ = 10Q + 8

4.). Variable cost = 5Q² + 8Q

 

The firm is in the short-run. This is because it has both fixed and variable costs.

In the long run, there are no fixed costs.