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In: Economics

4. You are given the following cost functions: TC= 100+ 60Q- 3Q2 + 0.1Q3 TC= 100+...

4. You are given the following cost functions:

TC= 100+ 60Q- 3Q2 + 0.1Q3

TC= 100+ 60Q+ 3Q2

TC= 100+ 60Q

a. Compute the average variable cost, average cost, and marginal cost for each function. Plot them on a graph.

b. In each case, indicate the point at which diminishing returns occur. Also indicate the point of maximum cost efficiency (i.e., the point of minimum average cost).

c. For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average cost. Also, discuss the relationship between average variable cost and average cost.

PLEASE EXPLAIN EVERY STEP WITH DETAIL

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Rahul Sunny answered 8 months ago
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