Q3) Short run total cost function of Haroon’s Electronics is given below: 10 TC = 100 + 50Q – 12Q2 + Q3 Where TC is the total cost and Q is the level of output. Determine Total fixed cost function Total variable cost function Average variable cost function

Q3) Short run total cost function of Haroon’s Electronics is given below: 10 TC = 100 + 50Q – 12Q2 + Q3 Where TC is the total cost and Q is the level of output. Determine Total fixed cost function Total variable cost function Average variable cost function

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 3CQQ

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Question

Q3) Short run total cost function of Haroon’s Electronics is given below: 10

TC = 100 + 50Q – 12Q² + Q³

Where TC is the total cost and Q is the level of output.

Determine
Total fixed cost function
Total variable cost function
Average variable cost function
Marginal cost function
Calculate TC, ATC, AVC and MC when the firm produces 10 units of output.

Calculate the level of output at which AVC is at minimum.

Definition Definition Measure of the cost of production per unit of output, including only variable costs such as wages, materials, and utilities. AVC is calculated by dividing total variable cost by the number of units produced. Understanding average variable cost is important for businesses to make decisions on pricing, production levels, and profitability.

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