3. Nokia sells a new budget cell phone. Based on information provided by the accounting department, the average variable cost is: AVC = $30 + Q The average fixed cost is: AFC = $9,000,000/Q where Q is the number of phones. The phone sells for $50. Show your work/thought process: a. Find the total cost, average cost, and marginal cost equations. b. At what level of output is average total cost minimized?
3. Nokia sells a new budget cell phone. Based on information provided by the accounting department, the average variable cost is: AVC = $30 + Q The average fixed cost is: AFC = $9,000,000/Q where Q is the number of phones. The phone sells for $50. Show your work/thought process: a. Find the total cost, average cost, and marginal cost equations. b. At what level of output is average total cost minimized?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![3. Nokia sells a new budget cell phone. Based on information provided by the accounting department,
the average variable cost is: AVC = $30 + Q
The average fixed cost is: AFC = $9,000,000/Q
where Q is the number of phones. The phone sells for $50.
Show your work/thought process:
a. Find the total cost, average cost, and marginal cost equations.
b. At what level of output is average total cost minimized?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff21345a7-1409-4345-9a31-7c5184a5faa1%2F3c6ca811-2e4b-4f8e-8d76-08c671e411bb%2Fg77cwgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Nokia sells a new budget cell phone. Based on information provided by the accounting department,
the average variable cost is: AVC = $30 + Q
The average fixed cost is: AFC = $9,000,000/Q
where Q is the number of phones. The phone sells for $50.
Show your work/thought process:
a. Find the total cost, average cost, and marginal cost equations.
b. At what level of output is average total cost minimized?
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