Derivation of AVC and MC function
A company's total cost function is given by
TC= 100 + 3Q-0.1Q2 +0.4Q3
• Illustrate what is the company's fixed cost?
• Derive the average variable cost function.
• Derive the marginal cost function?
• Find the output which minimizes the AVC. (at minimum of AVC, MC=AVC)