Suppose function of Total Cost (TC) is the following: CT = 300 + 3Q + 2Q2 Where AT is total costo in USD y Q is number of boxes of manufactured devices  a) What are functions of Fixed Cost (FC) and Average Fixed Cost (AFC) ? Graph both b) What are functions of Variable Cost (VC) and Average Variable Cost (AVC) ? Graph both c) What is Marginal Cost (MC) Graph it

Q: Marginal cost is the slope of both the average variable cost and the variable cost functions. Select…

A: Marginal cost is the change in total cost or total variable cost per unit change in output.

Q: Suppose the total cost function of a firm is given as: TC = 720 - 45Q + 20². Determine the average…

A: Total cost of production is the summation of fixed cost and variable cost . It is the monetary value…

Q: A food truck gyro vendor has weekly fixed costs of ​$550​, and variable costs of $4.55 for each gyro…

A: Cost is the sum of fixed cost and variable cost

Q: Find total fixed cost if average fixed cost is $30 and output is 11

A: The information being given is:- Average fixed cost = $30  Output = 11 units  We have to calculate…

Q: Draw an example of the Total Fixed Cost, Total Variable Cost, and Total Cost of a company whose…

A: Total Cost: The term total cost refers to the sum of all the costs that are used in the production…

Q: average total cost of using 81 units of capital and 9 units of labor is:

A: The average total cost(ATC) is the per-unit total cost(TC) for production. This is TC divided by the…

Q: If you know that with 8 units of output, average fixed cost is $12.50 and average variable cost is…

A:

Q: Given the following cost functions: TC=100+60Q-3Q2+0.1Q3 TC=100+ 60Q+3Q2 TC=100 + 60Q Compute…

A: Since you have posted multiple questions so as per the answering guidelines, I have solved the first…

Q: A firm is producing 20 units with an average total cost of $25 and a marginal cost of $15. If it…

A: Average total cost is total cost divided by total output produced,  ATC = TC / Q Marginal cost is…

Q: Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If a cost function is C(q) = 2q3 - 6q2 + 20q • what is the fixed cost? What is the variable cost? •…

A: Economies of scale refers that when the cost per additional unit is decreasing due to increasing in…

Q: 1. The firm's fixed costs are $2,000, and the firm's total costs of producing 100 units is $4,000.…

A: TVC = TC - TFC = 4,000 - 2,000 = $2,000

Q: When the marginal product of labor diminishes average fixed cost rises average variable cost is…

A: Marginal product of labor is the additional output produced by employing an additional unit of…

Q: Suppose a firm’s production function is K^1/3  L^2/3 Mpk= L^2/3 / 3K^2/3  MpL=2K^1/3 /  3L^1/3…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Where Q = quantity, TC = total cost, TFC = total fixed cost, and TVC = total variable cost; average…

A: The average variable cost is the total variable cost per unit of output. The total variable cost is…

Q: (b) A firm has an average cost function A(q) = 125 q + q 2 16 − 4. where q is the firm′ s output.…

A: Answer: Given: Average cost function; Aq=125q+q216-4where q is the output Calculation: (4) The…

Q: Cost, revenue, and profit are in dollars and x is the number of units. If the daily marginal cost…

A: Given, Marginal cost (MC) = 4x+150 Fixed cost (FC) = $600 Here MC = dCdX

Q: an output of 0?…

A: Average cost is calculated as the average of total cost, required to produce each unit of output.…

Q: Suppose that the marginal cost of producing a pound of cereal is $2, irrespective of the level of…

A: Marginal cost is in addition to total cost because of producing one more unit of output. Average…

Q: The cost curve for producing widgets passes through the following points and is piecewise linear in…

A: Given Information: Units produced Costs 0 $600 200 $1200 400 $1600 600 $1800 The fixed…

Q: Consider the total cost function, TC = 25 + 6Q - 5Q^2 + 6Q^3 Find the marginal cost if firm want to…

A: Marginal cost is nothing but the cost incurred to the firm when they want to produce additional unit…

Q: The average variable cost curve and average total cost curve tend to converge as output rises…

A: ATC = TC/Q AFC = TFC/Q AVC = TVC/Q   TC = TFC + TVC TFC = TC – TVC AFC = AC - AVC

Q: When there are fixed costs and a constant marginal cost a. The average fixed cost function is…

A: The fixed cost does not change with change in the output level. The variable cost changes with…

Q: a producer faces a fixed cost Rs 50 and a variable cost of RS 5 per unit of output when he produces…

A: Answer: Given, Fixed cost = Rs 50 Variable cost = Rs 5 per unit of output (for output level below…

Q: Suppose a firm’s cost function is given by C(q) = 20 + 10q − 4q^2 + q^3 (a) What is fixed cost? (b)…

A: Given information: We have given the cost function.  i.e., C=20 + 10q - 4q2 + q3 The cost function…

Q: The production function is y = min{x1 , x2} where x1 and x2 are the amounts of two inputs used. The…

A: Two goods are complements when they are consumed together in fixed proportion.

Q: ($/Unit) Marginal Cost Q1 Quantity (Units per time period) A) In the above diagram, marginal cost…

A: There is inverse relationship between marginal cost and marginal product due to applicability of law…

Q: Suppose a shoes factory makes 100 pairs of shoes. At this level of production, they have $25 in…

A: Fixed cost is independent of output produced whereas variable cost varies with the level of…

Q: What is the critical point of the total cost function TC=1/3Q3+6Q2-640Q

A: Critical points are calculated by setting the derivative of a function equal to zero.

Q: Explain the following statement by using a graphical analysis: “Shape of the short-run cost curves…

A: The shape of the short-run total cost (TC) curve is cubic and that of the average cost (AC) curve is…

Q: Explain the meaning of fixed costs. Provide a few examples of firms' costs that are likely to be…

A: A firm's fixed costs are costs that do not change. It is irrespective of whether production or sales…

Q: suppose the cost function is given as C = 135 + 75Q – 15Q2 + Q3. Prepare a cost schedule (table)…

A:

Q: Let a two-output cost function be given by: C(y1, y2) = y1+Y2+Y1Y2 – (y142)² + yž. Assume that y1 >…

A:

Q: You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3…

A: Total cost (TC): It is the sum total of the cost that is being borne by the producer in the process…

Q: Which of the following is always true?A) When marginal costs are less than average total costs,…

A: Below are the cost curves: (Sorry it’s a free hand diagram so it is not very neat)

Q: The four statements below describe properties of a firm's short run cost curves. Complete the…

A: Average cost is the per unit cost of production. Marginal cost is the additional cost incurred to…

Q: 3. XYZ corporation produces widgets. Its short-run marginal cost curve is given by MC (q) = 10 – 5q…

A: Given information MC=10-5q+q^2 Marginal cost is the additional cost incurred by producing additional…

Q: Which of the following relationship is correct? When marginal product (MP) starts to increase;…

A: MP is the marginal product which is the additional product produced with an additional unit of…

Q: Water World Water Park has the following cost function: TC = 500 + 125q and MC = 125 a) Determine…

A: Given: TC = 500 + 125q MC = 125

Q: Consider a linear, increasing function for total costs. If there are fixed costs, which one of the…

A: Answer: A (Marginal cost is always falling) Explanation: The marginal cost will be constant in the…

Q: Consider the following total cost function: where represents output and are constants. What can we…

A: Answer: (b) The firm experiences falling average fixed costs, but rising average variable costs.

Q: According to the information below, which of the following is (are) true? Units of variable input…

A: The total cost of production is the summation of all the fixed cost as well as the variable costs in…

Q: What is the fixed cost of production

A: Given, MC(q) = 6 + (9/10) * q By integrating this function, we can get Total Variable Cost (TVC)…

Q: Marginal cost, average total cost and average variable cost Marginal cost and average total cost are…

A: a) No, Marginal cost, average total cost and average variable cost are not always equal. There exist…

Q: A firm is producing 20 units with an average total cost of $25 and a marginal cost of$15. If it were…

A: Average cost or ATC refers to the average cost of production of each unit. It is calculated as the…

Q: A firm is producing 1,000 units at a total cost of $5,000. If it were to increase production to…

A: The total cost is the sum of fixed cost and variable cost. The fixed cost is the cost of fixed…

Isocost and Isoprofit Curve Analysis

An isocost curve in the production theory that is a crucial part of economics depicts different combinations of factor inputs at a given market cost. In other words, this shows all the combinations of production factors that cost the same for the firm to employ. Usually, this can be depicted as a downward sloping straight line when the firms act as the price-takers in the factor markets. The slope of this mainly depicts the relative prices of different production factors.