Answer to Question #323692 in Economics for natan

Question

13.Assume the total cost of a producer of a commodity in the short - run is given by the equation:

TC = 30,000 + 15Q2 + 5Q Where: TC = total cost, Q = level of out put

Using the given total cost find equations for:

(A)- Variable costs (B) - Fixed costs (C) - Average variable costs

(D) - Average fixed costs (E) - Average costs (F) - Marginal costs

Answer 1

a) VC=15Q2 + 5Q;

b) FC=30,000

c) AVC=15Q+5

d) AFC=30,000/Q

e) AC=30,000/Q+15Q+5

f) MC=TC'=30Q+5