An economist estimated that the cost function of single-product firm is C(Q) = 100 + 20Q + 15Q^2...
Question:
An economist estimated that the cost function of single-product firm is {eq}C(Q) = 100 + 20Q + 15Q^2 + 10Q^3 {/eq}, where Q is the quantity of output. Calculate the average fixed cost of producing 10 units of output.
Cost:
In economics, the cost is the price paid by a firm to produce its final output for the market. This final output is sold in the market to earn a positive profit and continue business operations.
Answer and Explanation: 1
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View this answerWe know that the fixed cost is the cost that a firm has to incur irrespective of its level of output. In this case, the fixed cost is 100. Now, the...
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Fixed Costs: Definition, Formula & Examples
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Chapter 3 / Lesson 14
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What is a fixed cost? Learn the fixed cost definition and how to calculate it using the fixed cost formula. Compare fixed vs. variable costs and see fixed costs examples in business.
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