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Your company's management is thinking about putting in a third independent production line. The invited consultant calculated the overall cost function TC = 2500 +
- Your company's management is thinking about putting in a third independent production line. The invited consultant calculated the overall cost function TC = 2500 + 200Q - 2Q2 + 0.02Q3. Determine the algebraic expression for FC, VC, ATC, AFC, AVC, MC and build graphs of the last 4 types of production costs: Q = 10; 20; ... 150 (in increments of 10 to build a table with cost values). Determine the optimal volume of production (graphically, by calculation and make a comparative analysis). To what extent is the analytical (mathematical) method more accurate than the graphical method?
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