You are given the following cost functions: TC = 100 + 60Q - 3Q + 0.1Q*...

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You are given the following cost functions: TC = 100 + 60Q - 3Q + 0.1Q* TC = 100 + 60Q + 3Q² 100 + 60Q ² TC a. Compute the average variable cost, average cost, and marginal cost for each function. Plot them on a graph. b. In each case, indicate the point at which diminishing returns occur. Also indicate the point of maximum cost efficiency (i.e., the point of minimum average cost). c. For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average cost. Also discuss the relationship between average variable cost and average cost. You are given the following cost functions: TC = 100 + 60Q - 3Q + 0.1Q* TC = 100 + 60Q + 3Q² 100 + 60Q ² TC a. Compute the average variable cost, average cost, and marginal cost for each function. Plot them on a graph. b. In each case, indicate the point at which diminishing returns occur. Also indicate the point of maximum cost efficiency (i.e., the point of minimum average cost). c. For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average cost. Also discuss the relationship between average variable cost and average cost.

Answer rating: 100% (QA)

Part a 1 TC1 100 60Q 3Q2 01Q3 TVC1 60Q 3Q 01Q AVC1 TVC1Q 60 3Q 01Q2 AC1 TC1Q 10... View the full answer