Answer to Question #292093 in Microeconomics for Kaku

Question

Give the total cost function

Tc(q)-Q2+10Q+100

Answer 1

$TC = Q^2 + 10Q +100$

1) $TC = TVC + TFC;$ $TVC = Q^2 +10Q;$ $TFC = 100$;

$AC = TC/Q = Q+10 +\frac{100}{Q}$

$AVC= TVC/Q = Q+10$

2)$AC' = 1 - 100\times \frac{1}{Q^2} =0$ => $\frac{1}{Q^2} = \frac{1}{100} => Q = 10$

$AC_{min} = 10 + 10 + \frac{100}{10}=30$