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Different cost calculations with given the cost equation

Suppose you hire a furloughed Wall Street analyst to help you analyze your production process also she uses your historical cost records to estimate which your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following also describe how your logic also calculations.

a. describe how much is your industry's profit or loss at an output of zero? Elucidate.

b. With the above cost equation, average total costs (ATC), first decline as output increases also then begin to rise. Assuming output occurs in whole units, i.e. 1, 2, 3 at Illustrate what output does the low point of ATC occur also illustrate what is the ATC at which output? describe how your calculations.

c. Illustrate what is the total cost of an output of 500?

d. Illustrate what is the Average Variable Cost (AVC) at a production level of 10?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M916408

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