Answer:
Average Fixed Cost = FC/Q
Average Variable Cost = VC/Q
Average Total Cost = TC/Q
Marginal Cost = ΔTC/ΔQ
[tex]MC = 2q[/tex]
[tex]AFC = 10/q[/tex]
[tex]AVC=q[/tex]
[tex]AC = C/q[/tex]
Explanation:
Fixed Cost (FC):
This cost is fixed and doesn't change with quantity of output.
Variable Cost (VC):
This cost is variable and it changes as the quantity of output is changed.
Average Fixed Cost (AFC):
AFC = FC/Q
Where FC is the fixed cost and Q is the quantity of units produced
Average Variable Cost (AVC):
AVC = VC/Q
Where VC is the variable cost and Q is the quantity of units produced
Average Total Cost (ATC):
Average cost is the total average cost per unit of output produced.
ATC = TC/Q
Where TC is the total cost and Q is the quantity of units produced
or
ATC = AFC + AVC
Marginal cost (MC):
MC = ΔTC/ΔQ
Marginal cost is the additional cost of producing one additional unit.
The cost function is
[tex]C = 6 + q^2[/tex]
Taking the derivative of cost function with respect to q will yield Marginal cost
[tex]MC = \frac{dC}{dq}[/tex]
[tex]MC = \frac{d }{dq}(6+q^{2})[/tex]
[tex]MC = 2q[/tex]
The Average Fixed cost is
[tex]AFC = 10/q[/tex]
The Average Variable cost is
[tex]AVC=q[/tex]
The Average cost is
[tex]AC = C/q[/tex]
Answer:
1. AFC = TFC/q
2. MC = ΔTC/Δq
3. AVC = TVC/q
4. AV = TC/q
5. MC = 2q
6. The graph is attached
Explanation:
1. Average fixed cost (AFC) can be calculated as total fixed cost (TFC) divided by quantity (q). That is;
AFC = TFC/q
2. Marginal cost (MC) is the extra cost incurred as a result of to produce one more unit of a good. It is calculated as the change in total cost (TC) divided by change in quantity (q). That is;
MC = Change in TC/Change in q = ΔTC/Δq
3. Average variable cost (AVC) can be calculated by dividing the total variable cost (TVC) by the quantity (q) produced. That is;
AVC = TVC/q
4. Average cost (AC) can be calculated by dividing the Total cost (TC) by the quantity (q). That is;
AV = TC/q
5. When C = 6 + q^2
MC can be obtained by differentiating the C equation with respect to q to obtain the following:
MC = dC/dq = 2q
Therefore,
MC = 2q
6. Find attached the graph.
