# A firm has the short-run total cost function C(q)=100+10q-2q^2+q^3. a) Derive the equations for...

## Question:

A firm has the short-run total cost function {eq}C(q)=100+10q-2q^{2}+q^{3} {/eq}.

a) Derive the equations for average total cost, average fixed cost, average variable cost, and marginal cost.

b) Derive the short-run supply equation.

## Total cost function

A firm's total cost function is a sum of its fixed and variable costs. Fixed costs are any costs that does not change with output while the variable cost are costs that change with output.

## Answer and Explanation: 1

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View this answera) {eq}ATC = \frac{TC}{Q} = \frac{100+10Q-2Q^{2}+q^{3}}{Q} = \frac{100}{Q} + 10 - 2Q + Q^2 \\AFC = \frac{FC}{Q} = \frac{100}{Q} \\AVC =...

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Chapter 4 / Lesson 8Learn what the average cost of a firm is and how it differs from total cost. Understand the distinction between short run and long run average total cost.

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