Hi, I would greatly appreciate help understanding this problem.

QUESTION 3 (Costs of Production):

3.1 Given the total cost function:C = 1000 + 25Q + 0.05Q² and associated MC = 25 + 0.1Q

Calculate each of the following values at Q = 10:

Total Fixed Cost

Total Variable Cost

Average Fixed Cost

Average Variable Cost

Average Total Cost

Marginal Cost

3.2 Fill in the blanks in the table below, reflecting short-run costs of producing a product:

(Note: This problem is independent of problem 3.1. The table below does NOT use the cost function shown in 3.1)

Q Total Cost Total FC Total VC ATC AFC AVC MC

0

1 1050

2 1000 60

3 75

3.3 Fill in the blanks using your knowledge of various short run and long run characteristics of cost. (Note: Again, this problem is independent of problems 3.1 and 3.2)

Hubert has opened a bakery that makes cupcakes.For his first year of operation, he operates the bakery out of his home kitchen.He finds that when he pays his brother to help him, he is able to produce cupcakes at lower ATC than when he works alone.An economic reason for the lower ATC is likely to be

_______________________________________________

By his second year of operation, Hubert's cumulative output has increased. He finds that his ATC for the second year is lower than it was in his first year of operation, whether he works alone or whether he hires his brother to help him.A likely economic reason for his lower ATC in Year 2 is

______________________________________________.

In his third year of operation, Hubert leases space in a commercial kitchen, where he has access to large ovens, large mixers, and other such equipment. Hubert finds that his ATC is even lower than before.A new reason for the lower ATC might be

___________________________________________________.