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You are given the following cost functions: TC = 100 + 60Q - 3Q2 + 0.1Q3 TC = 100 +

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You are given the following cost functions:
TC = 100 + 60Q - 3Q2 + 0.1Q3
TC = 100 + 60(J + 3Q2
TC = 100 + 60Q
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 die 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.

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Answer rating: 44% (9 reviews)

a Quantity Average Variable Cost Average Total Cost Marginal Cost 0 1 57 10 157 10 57 10 2 54 40 104 40 51 70 3 51 90 85 23 46 90 4 49 60 74 60 42 70 …View the full answer


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Managerial Economics

Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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Question Posted: June 20, 2016 00:33:08
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