Based on your knowledge of the definition of the various measures of short-run cost
Question # 00113896
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Updated on: 10/07/2015 01:24 PM Due on: 11/06/2015
1) Based on your knowledge of the definition of the various measures of short-run cost, complete this table.
Q | TC | TFC | TVC | AC | AFC | AVC | MC |
0 | 120 | [A] | [B] | - | - | - | - |
1 | [C] | [D] | [E] | 265 | [F] | [G] | [H] |
2) Consider the following cost equation: Total Cost (TC) = 160Q -10Q2 + 1.2Q3. What is Total Cost when the Quantity is 20?
3) Which of the following represents the equation for the Average Cost (AC)?
AC = 160 – 10Q + 1.2Q2
AC = 160Q – 10Q + 1.2Q
AC = 80Q – 5Q2 + 0.6Q3
AC = 53.3Q – 3.3Q2 + 0.4Q3
4) What is the Marginal Cost of producing the 21st unit? (Hint: Begin by calculating TC at 20 and at 21.)
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Solution: Based on your knowledge of the definition of the various measures of short-run cost