Question

For the following cost function TC = a + bQ – cQ2 + dQ3, determine the equations for TFC, TVC, AFC, AVC, AC, MC. (a,b,c,d> 0)

Answer 1

$AC=\frac{TC}Q=\frac aQ+b-cQ+dQ^2,$

$MC=TC'=b-2cQ+3dQ^2.$