Given the total cost function TC(q) = 100 + 5q + 1/2q2, find an expression for:
(a) fixed cost
(b) average cost
(c) average fixed cost
(d) average variable cost
(e) marginal cost
Given the total cost function TC(q) = 100 + 5q + 1/2q2, find an expression for:
(a) fixed cost
(b) average cost
(c) average fixed cost
(d) average variable cost
(e) marginal cost
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Related questions
a. Construct the cost schedule using the data below for a firm operating in the short run.
b. Graph the average variable cost, average total cost, and marginal cost curves.
| Total Output (Q) | Total Fixed Cost (TFC) | Total Variable cost (TVC) | Total Cost (TC) | Marginal Cost (MC) | Average Fixed cost (AFC) | Average Variable Cost (AVC) | Average Total Cost (ATC) |
| 0 | $50 | ||||||
| 1 | $70 | ||||||
| 2 | $85 | ||||||
| 3 | $95 | ||||||
| 4 | $100 | ||||||
| 5 | $110 | ||||||
| 6 | $130 | ||||||
| 7 | $165 | ||||||
| 8 | $215 | ||||||
| 9 | $275 |
2. Complete the following cost table:
|
Q |
FC |
VC |
TC |
MC |
AFC |
AVC |
ATC |
|
0 |
- |
- |
- |
- |
|||
|
1 |
10 |
||||||
|
2 |
18 |
5 |
|||||
|
3 |
23 |
||||||
|
4 |
6.5 |
where FC is fixed cost, VC is variable cost, TC is total cost, MC is marginal cost, AFC is average fixed cost, AVC is average variable cost, and ATC is average total cost.
Construct the cost schedule using the data below for a firm operating in the short run. Graph the average variable cost, the average total cost, and marginal cost curves.
| Total Output (Q) | Total fixed cost (TFC) (in $) | Total variable cost (TVC) (in $) | Total cost (TC) (in $) | Marginal cost (MC) (in $) | Average fixed cost (AFC) (in $) | Average variable cost (AVC) (in $) | Average total cost (ATC) (in $) |
| 0 | 50 | 50 | |||||
| 1 | 70 | ||||||
| 2 | 85 | ||||||
| 3 | 95 | ||||||
| 4 | 100 | ||||||
| 5 | 110 | ||||||
| 6 | 130 | ||||||
| 7 | 165 | ||||||
| 8 | 215 | ||||||
| 9 | 275 |
