The short-run cost function of a company = TC=200+55y( tc,y measured in thousands)
a) what is the fixed cost ?
b) ıf the company produces 100.000 units of output, what would be the AVC ?
c) what would be its marginal cost (y=100.000)
d) what would be its average fixed cost (y=100.000)
e)suppose that company expounds, its production capacity, therefore, fixed cost increases by $50.000, but its variable cost falls to $ 45.000 per1000 units write the new cost equation?
f)Suppose the company borrows money and expands its factory. Its fixed cost rises by $50.000, but its variable cost falls to $45.000 per 1000 units. The cost of interest ( ) also enters into the equation. Each 1 -point increase in the interest rate raises costs by $3000 Write the new cost equation
a) what is the fixed cost ?
(in thousands)
b) ıf the company produces 100.000 units of output, what would be the AVC ?
The variable cost here is
c) what would be its marginal cost (y=100.000)
TC=200+55y
(in thousands)
d) what would be its average fixed cost (y=100.000)
e)suppose that company expounds, its production capacity, therefore, fixed cost increases by $50.000, but its variable cost falls to $ 45.000 per1000 units write the new cost equation?
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