Answer to Question #239801 in Economics for Ashe

Question

3. Given the totalcost function; Q = 0.1Q3- 3Q3+ 60Q + 5400
A. Calculate each average cost function and show it graphically
B. What isthe leveloutput at the minimum level of average variable cost?
c. What is the level of output a1 the minimum point of average total cost and
what is trend or average variable cost at this poinr?
D. WhatIs the fixed cost andwhat does it mean?

Answer 1

$$ATC=0.1Q^2-3Q+60$$

$$min_{ATC}=15$$

$$TC(Q=15)=5962.5$$

$$FC=5400$$