Answer to Question #283762 in Economics of Enterprise for Jiga

Question

The marginal cost of a trade has been found to be MC=3Q^2+8Q+400.

determine the total virable cost of producing 100 units of the trades product. And show by graph

Answer 1

Solution:

MC = 3Q² + 8Q + 400

First, derive total cost:

Now to derive TC from it we have to integrate over the MC equation. Therefore, we will get:

TC= Q³ + 4Q² + 400Q

TC = TVC + TFC

Since there is no fixed cost, we assume the above is the Total Variable Cost (TVC):

TVC = Q³ + 4Q² + 400Q

TVC for producing 100 units:

Q = 100

TVC = 100³ + 4(100²) + 400(100) = 1,000,000 + 40,000 + 40,000 = 1,080,000

TVC for producing 100 units = 1,080,000