In addition to expenses for delivery and assembly of the facilities, Ammongas also has expenses for sales, administration, rent, etc. The company estimates that it is reasonable to state the total variable costs over an annual accounting period of approximately: TVC = 8,199,860 * Q3 - 123,570 * Q2 + 1,425,600 * Q, where Q is the number of plants delivered. 16 plants were delivered Derive the function expressions for the total AVC and MC functions mathematically within the given financial year. Illustrate the cost functions graphically and discuss the use of such an approximate function expression. Make the necessary assumptions yourself.

In addition to expenses for delivery and assembly of the facilities, Ammongas also has expenses for sales, administration, rent, etc. The company estimates that it is reasonable to state the total variable costs over an annual accounting period of approximately: TVC = 8,199,860 * Q3 - 123,570 * Q2 + 1,425,600 * Q, where Q is the number of plants delivered. 16 plants were delivered Derive the function expressions for the total AVC and MC functions mathematically within the given financial year. Illustrate the cost functions graphically and discuss the use of such an approximate function expression. Make the necessary assumptions yourself.

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

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.6CE

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