Business Economics

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

  1. 👍
  2. 👎
  3. 👁
  1. 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. 👍
    2. 👎
  2. 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. 👍
    2. 👎

Respond to this Question

First Name

Your Response

Similar Questions

  1. calculus help

    If C(x) = 12000 + 600x − 0.6x^2 + 0.004x^3 is the cost function and p(x) = 1800 − 6x is the demand function, find the production level that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue

  2. math/economics in calculus

    The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. I know that the total cost is

  3. Managerial Economics

    Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000.

  4. Precalculus

    Johnny's Tumblers sells plastic cups in bulk for start-up restaurants. Their cost for producing these is modeled by: c(x) = 0.02x^2 + 0.5x + 40 a) Since the marginal cost is found by taking the derivative, the formula for c'(x)= ?

  1. CVP Analysis - Business Math

    Engineering estimates show that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $120 per unit and variable selling expense is expected to

  2. economic

    . The short run cost function of the firm is of the form: TC = 300 + 50Q - 10Q2 + Q3. a) What is the value of fixed costs? b) Write expressions for ATC, AVC, AFC and the marginal cost. c) Calculate the output at which average

  3. Microeconomics

    When average total cost is declining then: a) marginal cost must be less than average cost b) marginal cost must be greater than average cost c) average toal cost must be greater than average fixed cost d) average variable cost

  4. Calculus

    The cost to produce x items is given by the function C(x) = 1200 + 8x + 0.01x^2. a) Write a function that represents the average cost of producing x items. b) Use the derivative of the function from a) to find the number of items

  1. Economics

    The Ali Baba Co is the only supplier of a particular type of Oriental carpet. The estimated demand for its carpets is Q= 112,000 – 500P + 5M, where Q= number of carpets, P= price of carpets (dollar per unit), and M= consumers

  2. Calculus

    If C(x) = 18000 + 400x − 2.2x^2 + 0.004x^3 is the cost function and p(x) = 2800 − 7x is the demand function, find the production level that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue

  3. Economics

    2) Earl’s production function is f(x1, x2) = x1^(1/2) * x2^(1/3), where x1 is the number of pounds of lemons he uses and x2 is the number of hours he spends squeezing them. His cost function is c(w1, w2, y) = 2w1^(1/2) *

  4. 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

You can view more similar questions or ask a new question.