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MG 640 Bureaucratic Economics

Week 8 Part 5: Creation Process and Costs

In this week examine Chapter a few, pages 178-198

Query 4. On-page 201

Lower part of Type

An economist estimated that he expense function of single-prodcut organization is C(Q) = 90 + 20Q + 15Q2 + 10Q3

Based on this info, determine:

a. The fixed cost of producing 10 units of output

b. The variable cost of producing twelve units of output

c. The total expense of producing 15 units of output

deb. The average fixed cost of generating 10 products of result

e. The standard variable expense of producing 12 units of output farreneheit. The average total cost of making 10 units of output

g. The marginal cost when Q = 12

Question 6th. On page 193

A business's fixed costs for creating 0 devices of result and its common total expense of producing diverse output amounts are described in the adventure below.

Complete the table to find the fixed expense, variable cost, total price, average fixed cost, normal variable price, and limited cost by any means levels of result.

Q

FC

VC

TC

AFC

AVC

ATC

MC

0

\$15, 500

-----

95

\$300

two hundred

200

300

175

4 hundred

225

500

325

600

400

House Assignment/Drop Box Instructions:

Home work is due inside the weekly Drop Box simply by Saturday 5pm.

Send homework as a Term attachment or copy and paste inside the Drop Container

Question 5:

C(Q) = 100 + 20Q + 15Q2 + 10Q3

a) Fixed expense of producing twelve units of output

FC= \$22.99

b) Variabe cost of generating 10 Devices is:

VC = 20(10) + 15(10)2 + 10(10)3

= two hundred + truck + ten thousand

= \$11700

c) Total Cost of producing 10 Units = VC + FC

= 11700+ 100

sama dengan \$11800

d) Average FC of producing 12 units sama dengan FC/ 15

= 100/10 = 15

e) Average VC of manufacturing 10 units = VC/ 10

= 11700/10 = 1170

f) Average TC of producing 10 units = TC/ 15

= 11800/10 = 1180

g) Little cost

MC(Q) = twenty +...