Answered

The following is a cost function: (C(q) = 100 + 5q + 0.1q^2), where (q) represents the quantity produced. Answer the following and illustrate with a graph.

AThe fixed cost of producing 10 units of output.
BThe variable cost of producing 10 units of output.
CThe total cost of producing 10 units of output.
DThe average fixed cost of producing 10 units of output.

Verified Answer :

Explanation:

a) Just plot the value of q = 10 in the function to get the answer

which gives 160 and for plotting on graph a horizontal line at 160 Y value

b) any cost below 160 will be the variable cost till the x value of 0

so basically 160>cost>100

c) the total cost is the area under the whole graph till 10 units of output

which gives 1283.333

d)1283.333/10 is the average cost

for graph show a) as one horizontal line

b) as the value two dots on the graph or inequality

c) is the integral shade the region under the graph

d) is one more horizontal line at 128.3

Related Questions