1. Given total cost function TC= 1500+15Q -6Q²+Q³

(a) Find the level of output that minimises total cost

(b) Find the level of output that minimises average cost

(c) Find the level of output that minimises marginal cost

2. Given the short run total cost function ; TC= 100+50Q-12Q²+Q³

(a) Determine total fixed cost function, total variable cost function, average variable cost function and marginal cost function

(b) Calculate total cost ,average total cost, average variable cost and marginal cost when the firm produces 20units of output

(c) Calculate the level of output at which average variable cost is minimum

3. Suppose a firm faces cost function C = 200+4Q+Q²

(a) What is the firms fixed cost

(b) Derive an expression for the firms variable cost

(c) Derive an expression for the firms marginal cost

4. Explain why long run average cost is U shaped?

5. Explain the relationship between marginal cost and marginal product and graphically present it

6. Draw the cost curves with their usual shapes and discuss their relationships

7. Graphically present and explain the relationship between marginal cost and average cost