A firm's total cost function is given by the equation: 𝑇𝐶 = 4000 + 5𝑄 + 10𝑄 2 i. Write an expression for each of the following cost concepts: Total Fixed Cost Average Fixed Cost Total Variable Cost Average Variable Cost Average Total Cost M....
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TC= 4000 + 5Q + 10Q^2
Expression for each of the following
a) Total Fixed Cost (TFC) = 4000
b) Average Fixed Cost (AFC) = 4000/Q
c) Total Variable Cost (TVC) = TC-TFC
TVC= (4000 + 5Q + 10Q^2)-4000
TVC = 5Q + 10Q^2
d) Average Variable Cost = TVC/Q
AVC= (5Q + 10Q^2)/Q = 5 + 10Q
AVC= 5 + 10Q
e) Average Total Cost (ATC) = TC/Q
ATC = (4000 + 5Q + 10Q^2)/Q
ATC = 4000/Q + 5 + 10Q
f) Marginal Cost (MC) = dTC/dQ
MC = 5 + 20Q
Q = 100 units, solve for TC, TFC, AFC, TVC, AVC, ATC, MC
1) Total Cost (TC)
TC = 4000 + 5Q + 10Q^2
TC = 4000 + 5(100) + 10(100)^2
TC = 4000 + 500 + 10(10000)
TC = 4000 + 500 + 100000
TC = 104,500
2) Total Fixed Cost (TFC)
TFC = 4000
3) Average Fixed Cost (AFC)
AFC = TFC/Q
AFC = 4000/100
AFC = 40
4) Total Variable Cost (TVC)
TVC = 5Q + 10Q^2
TVC = 5(100) + 10(100)^2
TVC = 500 + 10(10000)
TVC = 500 + 100000
TVC = 100,500
5) Average Variable Cost (AVC)
AVC = 5 + 10Q
AVC = 5 + 10(100)
AVC = 5 +1000
AVC = 1,005
6) Average Total Cost (ATC)
ATC = 4000/Q + 5 + 10Q
ATC = 4000/100 + 5 + 10(100)
ATC = 40 + 5 + 1000
ATC = 1,045
7) Marginal Cost (MC)
MC = 5 + 20Q
MC = 5 + 20(100)
MC = 5 + 2000
MC = 2,005