Question: 1 . ) Let TC = 3 0 0 + 1 0 0 Q - 1 2 Q 2 + Q 3 . a .

1.) Let TC =300+100Q -12Q 2+ Q 3.
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 =10.
c.) Draw the MC, AVC and ATC curves in general (p.364's Fig. 9.2 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' and/or what is the
slope of AVC at Q'?(Thus, 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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