Consider the following cost equation: Total Cost (TC) = 160Q -10Q^2+ 1.2Q^3. What is Total Cost...
Question:
Consider the following cost equation: Total Cost (TC) = {eq}160Q -10Q^2+ 1.2Q^3. {/eq}
What is Total Cost when the Quantity is 20?
Which of the following represents the equation for the Average Cost (AC)?
AC = 160 - 10Q + {eq}1.2Q^2 {/eq}
AC = 160Q - 10Q + 1.2Q
AC = 80Q - {eq}5Q^2 + 0.6Q^3 {/eq}
AC = 53.3Q - {eq}3.3Q^2 + 0.4Q^3 {/eq}
What is the Marginal Cost of producing the 21st unit? (Hint: Begin by calculating TC at 20 and at 21.)
Total Cost, Average Cost and Marginal Cost:
The total cost of production represents the maximum cost incurred by a firm in the production of a given amount of output. The average cost represents the average cost used in the production of one unit of output. The marginal cost of production is the additional cost incurred when the firm produces one more unit of output.
Answer and Explanation: 1
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View this answera) What is Total Cost when the Quantity is 20?
To get the total cost when Q = 20 units, we will substitute Q = 20 into the TC curve.
{eq}TC = 160Q...
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Average Cost Vs. Total Cost: Making Production Decisions in the Short-Run
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Chapter 4 / Lesson 8
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Learn 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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