Final answer:
The determination of marginal cost, fixed and variable costs, and analysis of profit or loss scenarios at different selling prices, along with the graphical representation of cost curves, are essential for making informed business decisions in an online shopping store setting.
Step-by-step explanation:
The question revolves around the cost analysis of an online shopping store based in the UK and involves determining the marginal cost function, evaluating marginal cost at a specific output, discussing fixed and variable costs, and calculating average fixed cost and average variable cost at a certain output level. There is also an inquiry about the zero-profit point, shutdown point, profit or loss scenarios at different selling prices, and a request for a graphical representation of cost curves.
Marginal Cost Function:
The marginal cost (MC) function can be determined by taking the derivative of the total cost function with respect to the quantity (Q). However, the average cost function is given as AC = 9Q^2 - 3Q + 6 + /Q, which seems to have an error since the '/Q' part does not make mathematical sense. If it means AC = 9Q^2 - 3Q + 6 + 1/Q, then the MC function can be calculated by first finding the total cost function (TC) from AC and then differentiating TC with respect to Q.
Fixed and Variable Costs:
Fixed costs (FCs) are costs that do not change with the amount of goods produced, whereas variable costs (VCs) change with the production volume. Examples of FCs for an e-store might include web hosting fees, salaries for staff, and rent or mortgage payments on warehouse space. VCs may consist of costs for packaging, shipping, and the cost of goods sold. To calculate these, we would need to revert the average cost to the total cost and separate the fixed and variable components.
Zero-Profit and Shutdown Points:
The zero-profit point is when a company's total revenue equals its total costs, and it can be found when the price equals the average total cost (ATC). The shutdown point is when the price drops below the average variable cost (AVC), at which point the company would minimize losses by ceasing production. Profit or loss can be determined by comparing selling price with ATC and AVC, and the extent of profit or loss is the difference between total revenue and total costs at a given quantity.
Graphical Representation:
A graph illustrating the AC, MC, and AVC curves would show their typical shapes: U-shaped for ATC and AVC and upward-sloping for MC. Point of intersection between MC and ATC indicates the minimum efficient scale, while the MC curve crosses AVC at its minimum point. The point where price intersects these curves determines profitability.
Note: As the given average cost function appears to have a typo, a precise mathematical solution to this question cannot be provided without clarification.