Question: 1 . ) Let TC = 3 0 0 + 1 0 0 Q - 1 2 Q 2 + Q 3 . a .
Let TC Q Q Q
a Identify the fixed and variable costs in the above equation.
b From the above equation, find the equations for AFC, AVC, ATC and MCin
general and then, for Q
c Draw the MC AVC and ATC curves in general ps Fig. except for AFC
On the graph, note Q where AVC MC and Q where MC is minimized.
d Calculate Q and Q for the above equation.
Hint for Q: what is happening between AVC and MC at Q andor what is the
slope of AVC at QThus there are two ways to make this calculation.
Hint for Q: what is the slope of MC at Q
e Calculate AVC and MC for Q and Q and add it to your graph.
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