Suppose the firm has the following total cost function:
a. Write equations for average fixed cost and average variable cost
a. What will be the value of short-run average cost when Q = 80?
b. Write the marginal cost equation for this firm
c. What will be the marginal cost be when Q = 40?
d. For this firm, what will be the dollar value of AVC at its minimum?
e. At what level of output will marginal cost be at its minimum?
f. What will be the value of marginal cost when it is at its minimum?

Question

Suppose the firm has the following total cost function:
  a. Write equations for average fixed cost and average variable cost
a. What will be the value of short-run average cost when Q = 80?
b. Write the marginal cost equation for this firm
c. What will be the marginal cost be when Q = 40?
d. For this firm, what will be the dollar value of AVC at its minimum?
e. At what level of output will marginal cost be at its minimum?
f. What will be the value of marginal cost when it is at its minimum?

Quizplus · Accepted Answer

The Answer of Suppose the firm has the following total cost function:
  a. Write equations for average fixed cost and average variable cost
a. What will be the value of short-run average cost when Q = 80?
b. Write the marginal cost equation for this firm
c. What will be the marginal cost be when Q = 40?
d. For this firm, what will be the dollar value of AVC at its minimum?
e. At what level of output will marginal cost be at its minimum?
f. What will be the value of marginal cost when it is at its minimum?

Suppose the Firm Has the Following Total Cost Function