Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose a firm has the following short run total cost function: TC = 400 + 150Q -3Q 2 + 0.02Q 3 - 400 Based on
Suppose a firm has the following short run total cost function:
TC = 400 + 150Q -3Q2 + 0.02Q3 - 400
Based on this equation, calculate:
a)Total fixed cost function
b)Total variable cost function
c)Average fixed cost function
d)Average variable cost function
e)Average total cost function
f)Marginal cost function(6 marks)
g)The output level at which marginal cost is minimum (2 marks)
h)The output level at which average variable cost is minimum (2 marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started