Question

A short-run average total cost or average cost curve is given by the
equation"
SAC (Q)= 12/Q+0.14Q

Derive expressions for the corresponding short-run total cost, short-run average variable
cost, and short-run average fixed cost.

Answer 1

If SAC (Q) = 12/Q + 0.14Q, then:

short-run average fixed cost is $SAFC = 12/Q,$

short-run average variable cost is $SAVC = 0.14Q,$

short-run total cost is $STC = SAC*Q = 12 + 0.14Q^2.$