3:5 Uwe produces bicycles. The quantity of bicycles is Q. The material costs are 36 for each bicycle. The costs of the machines Uwe uses is 10 Q². The rent for the garage is 810. Due to the time factor, he gives up income of 64 for each bicycle. a) Calculate the cost function. b) Calculate the marginal cost function (MC), the average cost function (ATC) and the function for the average variable costs (AVC).
3:5 Uwe produces bicycles. The quantity of bicycles is Q. The material costs are 36 for each bicycle. The costs of the machines Uwe uses is 10 Q². The rent for the garage is 810. Due to the time factor, he gives up income of 64 for each bicycle. a) Calculate the cost function. b) Calculate the marginal cost function (MC), the average cost function (ATC) and the function for the average variable costs (AVC).
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter12: The Cost Of Production
Section: Chapter Questions
Problem 4CQQ
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Transcribed Image Text:3:5 Uwe produces bicycles. The quantity of bicycles is Q. The material costs are 36 for
each bicycle. The costs of the machines Uwe uses is 10 Q². The rent for the garage is 810.
Due to the time factor, he gives up income of 64 for each bicycle.
a)
Calculate the cost function.
b) Calculate the marginal cost function (MC), the average cost function (ATC) and the
function for the average variable costs (AVC).
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