Math Solutions

[Solution] Consider the following variable cost function (Q= output) : V C=200 Q-9 Q^2+.25 Q^3 Fixed costs are equal to $150. Output TFC TVC TC AFC AVC

Question: Consider the following variable cost function \((Q=\) output ) :

\[V C=200 Q-9 Q^{2}+.25 Q^{3}\]

Fixed costs are equal to $150.

Output TFC TVC TC AFC AVC ATC MC
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  1. Determine the total cost function.
  2. Determine the (i) average fixed, (ii) average variable, (iii) average total, and (iv) marginal cost functions.
  3. Determine the value of Q at which point the average variable cost function takes on its minimum value. Hint: Take the first derivative of the AV C function, set the derivative equal to 0, and solve for Q. Also use the second derivative to check for a maximum or minimum.
  4. Determine the value of Q at which point the marginal cost function takes on its minimum value.

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Solution: The downloadable solution consists of 3 pages
Deliverable: Word Document


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