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For equation TC = 20 + 4Q - 0.1Q^2 Prepare a table with quantities 0 through 10 and Calculate...

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For equation {eq}TC = 20 + 4Q - 0.1Q^2 {/eq}

Prepare a table with quantities 0 through 10 and

Calculate the following for each quantity

1. Total cost

2. Total fixed cost

3. Total variable cost

4. Average total cost

5. Average fixed cost

6. Average variable cost

7. Marginal cost

Then plot the curves on a graph and interpret

Total Fixed Cost, Total Variable Cost and, Total Cost

Total fixed cost remains constant at all levels of output, as a result, it was a straight line. The slope of the total fixed cost curve and the total variable cost curve is the same. So, their shape is also the same and both of them are parallel to each other at every level of output.

Answer and Explanation: 1

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The Total Cost is given as:

{eq}{\rm{TC}} = 20 + 4{\rm{Q}} - 0.1{{\rm{Q}}^{\rm{2}}} {/eq}

Total fixed cost is the same at all levels of output that...

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Total Cost in Economics: Definition & Formula

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Chapter 3 / Lesson 16
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What is total cost in economics? Learn how to calculate total cost using the total cost formula. See the definitions of total fixed cost and total variable cost.


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