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You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3 TC=100+60Q+3Q2TC=100+60Q+3Q2 TC=100+60QTC=100+60Q 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. Discuss the relationship between average variable cost and average cost.

You are given the following cost functions: TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3 TC=100+60Q+3Q2TC=100+60Q+3Q2 TC=100+60QTC=100+60Q 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. Discuss the relationship between average variable cost and average cost.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are given the following cost functions:

TC=100+60Q−3Q2+0.1Q3TC=100+60Q−3Q2+0.1Q3

TC=100+60Q+3Q2TC=100+60Q+3Q2

TC=100+60QTC=100+60Q

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. Discuss the relationship between average variable cost and average cost.

TC = 100 + 60Q - 3Q2 +0.1Q3 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Average Cost Average Variable Cost Marginal Cost
Transcribed Image Text:TC = 100 + 60Q - 3Q2 +0.1Q3 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Average Cost Average Variable Cost Marginal Cost
TC = 100 + 60Q + 3Q² 250.0 200.0 150.0 100.0 50.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 25.0 27.0 29.0 AC AVC MC
Transcribed Image Text:TC = 100 + 60Q + 3Q² 250.0 200.0 150.0 100.0 50.0 1.0 3.0 5.0 7.0 9.0 11.0 13.0 15.0 17.0 19.0 21.0 23.0 25.0 27.0 29.0 AC AVC MC
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