Problem 4, Chapter 7, Page 286 Question: You are given the following cost functions. A. Compute the average cost, average, and managerial cost for each function. Plot then on a graph. B. In each case, indicate the point at which diminishing returns occur. Also, indicate the point of maximum cost cost efficiency. ( i.e the point of maximum average cost) c. For in funtion discuss the relationship betwen marginal cost and average varible cost and betwen marginal cost abd average cost. Also, discuss the relationship between average varible cost and average cost. First Function: TC = 100 + 60Q - 3Q2 +0.1Q3 Average Average Marginal Quantity Fixed Cost Variable Cost Total Cost Cost Variable Cost Cost 1 100.0 57 157.1 157.1 57.1 57.1 2 100.0 (157.1) 3 100.0 - 4 100.0 - 5 100.0 - 6 100.0 - 7 100.0 - 8 100.0 - 9 100.0 - 10 100.0 - 11 100.0 - 12 100.0 - 13 100.0 - 14 100.0 - 15 100.0 - 16 100.0 - 17 100.0 - 18 100.0 - 19 100.0 - 20 100.0 - 21 100.0 - 22 100.0 - 23 100.0 - 24 100.0 - 25 100.0 - 26 100.0 - 27 100.0 - 28 100.0 - 29 100.0 - 30 100.0 - Second Function TC = 100 + 60Q + 3Q2 Quantity Fixed Cost Variable Cost Total Cost AC AVC MC 1.0 100.0 63.0 163.0 163.0 63.0 63.0 2.0 100.0 (163.0) 3.0 100.0 - 4.0 100.0 - 5.0 100.0 - 6.0 100.0 - 7.0 100.0 - 8.0 100.0 - 9.0 100.0 - 10.0 100.0 - 11.0 100.0 - 12.0 100.0 - 13.0 100.0 - 14.0 100.0 - 15.0 100.0 - 16.0 100.0 - 17.0 100.0 - 18.0 100.0 - 19.0 100.0 - 20.0 100.0 - 21.0 100.0 - 22.0 100.0 - 23.0 100.0 - 24.0 100.0 - 25.0 100.0 - 26.0 100.0 - 27.0 100.0 - 28.0 100.0 - 29.0 100.0 - 30.0 100.0 - Third Function Total Cost = 100 + 60Q Quantity FC VC TC AC AVC MC 1.0 100.0 60.0 160.0 160.0 60.0 60.0 2.0 100.0 (160.0) 3.0 100.0 - 4.0 100.0 - 5.0 100.0 - 6.0 100.0 - 7.0 100.0 - 8.0 100.0 - 9.0 100.0 - 10.0 100.0 - 11.0 100.0 - 12.0 100.0 - 13.0 100.0 - 14.0 100.0 - 15.0 100.0 - 16.0 100.0 - 17.0 100.0 - 18.0 100.0 - 19.0 100.0 - 20.0 100.0 - 21.0 100.0 - 22.0 100.0 - 23.0 100.0 - 24.0 100.0 - 25.0 100.0 - 26.0 100.0 - 27.0 100.0 - 28.0 100.0 - 29.0 100.0 - 30.0 100.0