Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

21) The short-run cost function of a company is given by the equation TC = 400 + 65q, where TC is the total cost and

21) The short-run cost function of a company is given by the equation TC = 400 + 65q, where TC is the total cost and q is the total quantity of output.

a. What is the company's fixed cost?

b. If the company produced 100 units of goods, what would be its average variable cost?

c. What would be its marginal cost of production?

d. If the company produced 100 units of goods, what would be its average fixed cost?

e. Suppose the company borrows money and expands its factory. Its fixed cost rises by 50, but its variable cost falls to 45 per units. Write the new cost equation.

please help thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Economics questions

Question

Evaluate the integral, if it exists. sec 0 tan 0 do 1 + sec 0

Answered: 1 week ago