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An accountant for a car rental company was recently asked to report the firm's cost of producing various levels of output. The accountant knows that the most recent estimate available of the firm's cost function is C(Q)=100+10Q+Q(squared)

Costs are measured in 1,000's of dollars & output is measured in 1,000's of hours rented.

1. What is the average fixed cost of producing 2 units of output?

2. What is the average variable cost of producing 2 units of output?

3. What is the average total cost of producing 2 units of output?

4. What is the marginal cost of producing 2 units of output?

5. What is the relation between the answers to a,b,& c? Is this a general property of average cost curves?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9293382

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