(a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300e® 1Q•2 TC= 3000 when Q = 0 Firm 2: C'(Q) = 41 +30Q -5Q² TC =400 when Q = 0 (i) What is the fixed cost for each firm (ii) Find the total cost function C(Q) for each firm (iii) average cost function for each firm

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 11MC
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(a) The marginal cost of two firms are given by the following
Firm 1: C'(Q) = 300e0 1Q+2
TC= 3000 when Q = 0
Firm 2: C'(Q) = 41 +30Q -5Q²
TC =400 when Q = 0
(i)
What is the fixed cost for each firm
(ii)
Find the total cost function C(Q) for each firm
(iii) average cost function for each fim
(iv)
Find the total cost for producing up to 100 units
Transcribed Image Text:(a) The marginal cost of two firms are given by the following Firm 1: C'(Q) = 300e0 1Q+2 TC= 3000 when Q = 0 Firm 2: C'(Q) = 41 +30Q -5Q² TC =400 when Q = 0 (i) What is the fixed cost for each firm (ii) Find the total cost function C(Q) for each firm (iii) average cost function for each fim (iv) Find the total cost for producing up to 100 units
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