Answer to Question #149984 in Macroeconomics for Ted

Question

IF THE TOTAL COST FUNCTION OF A FIRM IS GIVEN AS TC= Q raise to power 3+8Q raise to power 2+ 6Q+200

Determine the function of 1. AVERAGE VARIABLE COST

2.AVERAGE TOTAL COST

3.AVERAGE FIXED COST

4. MARGINAL COST @ Q=5

Answer 1

TC = Q³+8Q²+6Q+200

Average Total cost = TC / Q = Q²+8Q+6+200/Q

Average Fixed cost = 200/Q

Average Variable cost = Q²+8Q+6

MC = d(TC)/dQ = 3Q²+16Q+6

Q @ 5 , MC = 3(5)²+15(5)+6 = 156