Business Economics

How do you generate the average variable function (AVC) given the estimated marginal cost function (SMC)?

  1. 👍 0
  2. 👎 0
  3. 👁 114
asked by Elise
  1. Thank you for using the Jiskha Homework Help Forum. Hopefully this tutorial will help:

    http://www.economics.utoronto.ca/osborne/2x3/tutorial/C1INFRM.HTM

    1. 👍 0
    2. 👎 0
  2. I got a few answers but I don't know which one is correct.

    If the SMC = 80 - 0.1Q + 0.0001Q2, what would be the correct answer fo AVC?

    I'm still a bit confused.

    1. 👍 0
    2. 👎 0
    posted by Elise
  3. Total cost can be derived by integrating the marginal cost function.
    I get TC = 9=80Q - (.1/2)Q^2 + (.0001/3)Q^3.

    Devide by Q to get AVC

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. Economics- Help Please!!!

    MC = 125 - 0.42Q + 0.0021Q^2 Given the estimated marginal cost function, what are the total, variable, and average cost functions? At what output level does AVC reach its minimum value in the long run? What is the value of AVC at

    asked by eStone on March 28, 2009
  2. Managerial ECON

    The chief economist for Argus Corporation, a large appliance manufacturer, estimated the firm’s short- run cost function for vacuum cleaners using an average variable cost function of the form AVC = a + bQ + cQ2 where AVC

    asked by lost on November 6, 2011
  3. economics

    HELP!!!!! One and only Inc is a monopolist. The demand function for its product is estimated to be Q=60-0.4P +6Y+2A Y=3,000 P=Price per Unit Y=Per capita disposable personal income (thousands of dollars) A=hundreds of dollars of

    asked by Christina on August 25, 2010
  4. MATHS

    A company is a monopolist. The demand function for its product is as follows: Q = 60 – 0.4P + 6Y + 2A Where Q = quantity sold in units P = Price per unit Y = per capita disposal income (thousands of dollars) A = hundreds of

    asked by NICO on December 4, 2016
  5. Managerial Economics

    Dr. Jeraisy, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Jeraisy enjoys a rather substantial degree of market power in this market. She has estimated

    asked by Mo on September 6, 2007
  6. Managerial Economics

    Dr. Jeraisy, a well-known plastic surgeon, has a reputation for being one of the best surgeons for reconstructive nose surgery. Dr. Jeraisy enjoys a rather substantial degree of market power in this market. She has estimated

    asked by Mo on September 6, 2007
  7. home economics

    The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q-2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average

    asked by Anonymous on February 23, 2008
  8. econ

    The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q-2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average

    asked by Anonymous on February 23, 2008
  9. Econ

    A firm faces the following Average Cost function AC=1500Q^-1 + 300-27Q+1.5Q^2 Calculate the output level that minimizes: a) Marginal Cost b)Average Variable cost I need some help on this question. Thanks. If the average cost is

    asked by Jack on January 12, 2007
  10. Managerial Economics

    Everkleen Pool Services (EPS) provides weekly swimming pool maintenance in Jeddah. Dozens of firms provide this service. The service is standardized; each company cleans the pool and maintains the proper levels of chemicals in the

    asked by Mo on September 6, 2007

More Similar Questions