Given the Total cost Function, TC =5,600 +%3D27Q - 6Q² - .5Q³, solve for AC, MC, AVC andAFC

Formula to calculate:- 1) Average Cost AC=TCQ 2) Marginal Cost MC=dTCdQ 3) Average variable cost…

Answered: Given the Total cost Function, TC =…

Business

Economics

Given the Total cost Function, TC = 5,600 + 27Q - 6Q² - .5Q³, solve for AC, MC, AVC and AFC

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 4E

See similar textbooks

Related questions

Q: Lamburgs Incorporated is attempting to predict the impact of a forthcoming environmental regulation…

A: The expected variable cost can be determined by the probabilities of various uncertain events. There…

Q: a） Find the equation of the total cost function if total costs are 5200 when ? = 8.

A: The marginal cost can be determined by differentiating the total cost function with respect to the…

Q: Cost minimization when output is unknown an total costs are known. A factory that you are managing…

A: Given information: Q = 2K0.5L0.5 ----------> Production function…

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

A: Cost function is define as the minimized cost of production of a unit of any goods and services, for…

Q: A car part manufacturer has been asked to quote for 40 units of a new part. The following data are…

A: Learning curves uses the basis that the people and organizations get more efficient and productive…

Q: increasing, decreasing, or constant returns to scale.

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: When the MC curve is above the AVC curve, the AC curve must be decreasing.

A: Total cost is defined as the total expenses that a company or firm has to incur in order to produce…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: Here, average variable cost function is given as: AVC=96-2Q+0.05Q2 This function can be used to…

Q: Determine if the statements and expressions regarding costs are true or false. The ATC is always…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: The average total cost of producing electronic calculators in a factory is $26 at the current output…

A: Average total cost is the total of all production costs divided by the amount of output produced. It…

Q: The average cost function is given as:- AC = 2.5Q2 - 40 Calculate the average cost for the 8th…

A: The information provided to us is as follows:- AC function is:- 2.5Q2 - 40 Also the quantity is 8…

Q: From your knowledge of the relationships among the various cost functions, complete the following…

A: TFC = Production function which is not variable during short run. It remains fixed.…

Q: Find variable cost if total cost and total fixed cost are $440 and $80 respectively

A: The information being given is:- Total cost = $440 Total Fixed cost = $80 We have to calculate…

Q: ABC Company has a product that sells for $400 per unit and its variable cost per unit is $260.…

A: Price for a product is equal to $ 400. Variable cost is a cost that varies with the level of output…

Q: referring to the cost table above, what is the average variable cost if quantity produced equals 400…

A: Average variable cost varies with the output produced

Q: Give the formulas for and plot AFC, MC, AVC adn AC if the cost function is C=10 + 10q -4q2-q3.…

A: We are going to identify average cost, marginal cost to solve this question.

Q: For the cost function CQ) = 100 - 20 - 30, the total variable cost of producing 2 units of output is

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Consider the long run total cost function LRTC = 30*Q - .006*Q2 + .00001*Q3. What is Q when LRAC…

A: The cost function that represents the total cost of production for all goods produced is known as…

Q: What is meant by a sunk cost? Give typical sunk costs for an IT project.

A: Sunk costs are a type of fixed costs and they do not change irrespective of the levels of…

Q: A specialty bicycle manufacturer has determined the cost function for manufacturing is given by C(x)…

A: Total cost is the sum of fixed cost and variable cost. And marginal cost refers to the cost which is…

Q: The Precision Machine Tool Manufacturing Company has the following total cost function:…

A: The total expenditure (cost) expended on capital to achieve a certain amount of production, both…

Q: What will be the average fixed cost if TFC Is $350 and the output is 50 units

A: Fixed cost is the cost that remains fixed at all levels of output. This is the cost that is…

Q: In 2019, X Company sold 5,250 units of its only product. Total revenue was $1,345,575, total…

A: Total Revenue is the total amount earned by the seller after selling the goods and services or we…

Q: If variable cost at each output level doubles, ATC doubles. AFC doubles. MC remains unchanged. MC…

A: If variable cost doubles, fixed cost remaining same, then total cost rises but MC doubles.

Q: Identify each of the following costs associated with owning an automobile as direct (D) or indirect…

A: The costs involved in the production of a good or service are direct and indirect costs. A direct…

Q: At what level of output will average variable cost be at a minimum? What is the minimum average…

A: The average variable cost or AVC is the total (TVC) variable costs per unit of (Q) output. These…

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

A: TC=100+60Q-3Q2+0.1Q3 AC=TC/Q= 100/Q+60-3Q+0.1Q2 In this case FC= 100 VC= 60Q-3Q2+0.1Q3 AVC=VC/Q=…

Q: Refer to Table Cost.EX2. When production is 4 units, the firm's average total cost is about

A: Average Total Cost = (Total fixed cost + Total Variable Cost) / Output

Q: Consider the following total cost function: TC = 1500 + 300Q -3602 + 203 What is the quantity that…

A: In order to find the quantity at which Marginal Cost is minimised, we will first find the MC…

Q: An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost…

A: When talking about cost functions of a firm, it can be said that these coste function are…

Q: For the following problem, what would be the objective function that aims at minimizing the total…

A: Given,

Q: A cost function, Cix), is given below. Find the average cost per item when the required number of…

A: A cost function is a mathematical formula that illustrates how manufacturing costs change in…

Q: 3. Minimize the following total cost function: TC =Q3 – 10Q2 + 48Q + 46.

A: Given Total cost function TC=Q33-10Q2+48Q+46 ......(1) We will use application of…

Q: how to calculate total cost analysis

A: Objectives to calculate total cost analysis : Understand and define the critical variable and fixed…

Q: The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s…

A: We can use the given regression equation to estimate the average variable cost for the level of…

Q: Maju Malaysia is a company that provided the catering service to UTHM students. Which of the…

A: To run a business, there are numerous costs that the owner has to pay. These costs are explicit…

Q: When the level of production is 7 units, the total cost is $ 56. Then the average variable cost is…

A: Production is important for any business. Four factors of production are required for the…

Q: When the production volume (Q)is(100)units and the total costs (TC)is (1500) omani RIyals and fixed…

A: Total cost = Fixed cost + Variable cost

Q: Which of the following cost behavior assumptions is false? (You may select morethan one answer.)a.…

A: The cost behavior assumption “variable cost per unit increases as the activity increases” is a false…

Q: The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s…

A: Average variable cost: It is a company's variable costs partitioned by the amount of yield created.…

Q: Determine if the statements and expressions regarding costs are true or false. True False All costs…

A: “Since you have asked multiple questions, we will solve the first and second questions for you. If…

Q: For the cost function CQ) = 100 - 20 - 30, the total variable cost of producing 2 units of outout is

A: Variable cost is the proportion of total cost which varies with the output produced higher the…

Q: For each of the following total cost curves, determine if the technology exhibits increasing,…

A: Return to scale: It means the rate by which output changes if all inputs are changed by the same…

Q: . The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s…

A: Given: AVC = a + bQ + cQ2 Total fixed cost each month is- $180,000. To Find: Are the estimates ˆa,…

Q: Given below is a cost schedule of an automobile company operating in Kota Kinabalu. Total Product…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: Costs curves can shift. If a firm negotiates a new labor contract with its workers to raise wages,…

A: With the increase in wages , the cost curve will rise to show the higher cost .

Question

Given the Total cost Function, TC =
5,600 +
%3D
27Q - 6Q² - .5Q³, solve for AC, MC, AVC and
AFC

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Consider the long run total cost function LRTC = 30*Q - .006*Q2 + .00001*Q3. What is Q when LRAC when it is at its minimum? You can use a Spreadsheet, but I recommend using Solver to answer this question. Q will be a whole number. Only enter a number, for example, 40, and nothing else.
A company has invested in an online tool that is expected to generate a continuous revenue at a rate that increases 252 thousand TLs per time period t (t= 0 is when the tool begins to function). A continous promotion cost (in thousand TLs) function for 578 time periods, C(t), is also derived for the machine, C(t) = -t2 + 578t. Find out when the tool starts to generate profit? (Ignore the range of the cost function.
For the long- run total cost function LTC (Q) = Q2 + 10 Sketch ATC, AVC, AFC, and MC.
The average cost function is given as:- AC = 2.5Q2 - 40 Calculate the average cost for the 8th unit
Give the formulas for and plot AFC, MC, AVC, and AC if the cost function is a. C = 10 + 10q b. C = 10 + q2, or c. C = 10 + 10q – 4q2 + q3
The manufacturer produces certain items at a labor cost per unit of 315, material cost per unit is P 100, variable cost of P 3.00 each. If the item has a selling price of P 995, how many units must be manufactured each month for the manufacturer to break-even if the monthly overhead is P 461,600?
Sally Statistics is implementing a system of statistical process control (SPC) charts in her factory in an effort to reduce the overall cost of scrapped product. The current cost of scrap is $X per month. If a 75% learning curve is expected in the use of the SPC charts to reduce the cost of scrap, what would the percentage reduction in monthly scrap cost be after the charts have been used for 6 months? (Hint: Model each month as a unit of production.)
The average total cost of producing electronic calculators in a factory is $26 at the current output level of 200 units per week. If the fixed cost is $715 per week, then what is the firms variable cost?
Lamburgs Incorporated is attempting to predict the impact of a forthcoming environmental regulation on the variable costs associated with one of their merchandise. The legislature is still debating the regulation. There is a 50% chance that the rules will not be ready in time to impact variable costs next year. Lamburgs management anticipates that when the regulation is completed, it will increase variable costs by either 5% or 10%. At the moment, the variable cost of the product is $200 per unit. What is the expected variable cost for Lamburgs' key product next year based on these assumptions?
Economic cost is equal to the sum of exiplicit and implicit costs. True/ False
If you know that with 8 units of output, average fixed cost is $30 and average variable cost is $80, then total cost at this output level is: A. $110B. $240C. $640D. $880
A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break-even if the monthly overhead is P 428,000.