An economist estimated that the cost function of a single-product firm is: C(Q) = 60 + 30Q + 25Q2 + 5Q3. Based on this information, determine the following: a. The fixed cost of producing 10 units of output. $ b. The variable cost of producing 10 units of output. $ c. The total cost of producing 10 units of output. $ d. The average fixed cost of producing 10 units of output. $ e. The average variable cost of producing 10 units of output. $ f. The average total cost of producing 10 units of output. $ g. The marginal cost when Q = 10. $
An economist estimated that the cost function of a single-product firm is:
C(Q) = 60 + 30Q + 25Q2 + 5Q3.
Based on this information, determine the following:
a. The fixed cost of producing 10 units of output.
$
b. The variable cost of producing 10 units of output.
$
c. The total cost of producing 10 units of output.
$
d. The average fixed cost of producing 10 units of output.
$
e. The average variable cost of producing 10 units of output.
$
f. The average total cost of producing 10 units of output.
$
g. The marginal cost when Q = 10.
$
Introduction
The cost function calculates the lowest cost of making a specified level of output at some fixed price levels. In other words, cost functions are functions of input costs and output amount whose worth is the cost to produce that output at those input prices and is frequently used by businesses through the usage of the cost curve to minimize cost and maximize production efficiency. There are different types of costs.
Fixed Cost does not change when the quantity/output does.
Costs that are variable depending on the product being produced.
The price of manufacturing an additional unit is called the marginal cost.
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