Question: Question 5 . A firm s total cost function is given by the equation: TC = 4 0 0 0 + 5 q + 1

Question 5. A firms total cost function is given by the equation:
TC =4000+5q +10q2
(i)Write an expression for each of the cost concept:
(a) Total fixed cost;
(b) Average fixed cost;
(c) Total Variable cost;
(d) Average variable cost;
(e) Marginal cost.
(ii) Determine the quantity of output that minimizes average total cost. What is the minimum ATC? What is MC at minimum ATC?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!