Question

Find the Find the marginal cost function, given the average cost function AC=100100Q+2arginal cost function, given the average cost function AC=100100Q+2

Answer 1

Explanation:

a) total fixed cost is 100(derived from total cost function). It is not depended on output.

b)AFC=TFC/Q.AFC=TFC/Q.

AFC(100)=100/100=1.AFC(100)=100/100=1.

AFC(300)= 100/300=1/3.AFC(300)=100/300=1/3