A UK based manufacturer of satellites is reviewing its costs, outputs and profits for the previous year and has approached you to offer some economic analysis. You find the following data: MC = 3Q^2 + 4Q + 2e^2Q+ 7 Assume there are no fixed costs. (a) Determine the total cost function and advise what total costs would be if 10 units are produced.
(a) The total cost function is:
"TC = Q^3 + 2Q^2 + e^{2Q} + 7Q + FC,"
where FC is fixed cost.
If 10 units are produced, then the total costs would be:
"TC = 10^3 + 2\u00d710^2 + e^{2\u00d710} + 7\u00d710 + FC = 485,166,465.41 + FC."
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