Question

Give the formulas for and plot average fixed​ cost, AFC, marginal​ cost, MC, average variable​ cost, AVC, and average​ cost, AC, if the cost function​ is: Cequals6plusq squared. Marginal cost​ is:

Answer 1

Answer:

Average Fixed Cost = FC/Q

Average Variable Cost = VC/Q

Average Total Cost = TC/Q

Marginal Cost = ΔTC/ΔQ

$MC = 2q$

$AFC = 10/q$

$AVC=q$

$AC = C/q$

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

$C = 6 + q^2$

Taking the derivative of cost function with respect to q will yield Marginal cost

$MC = \frac{dC}{dq}$

$MC = \frac{d }{dq}(6+q^{2})$

$MC = 2q$

The Average Fixed cost is

$AFC = 10/q$

The Average Variable cost is

$AVC=q$

The Average cost is

$AC = C/q$

Answer 2

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.