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03-06-2023
Business

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The cost function (monthly) for your company can be defined as; TC = cost per unit (AC) * quantity supplied (Q). If the cost per unit (average cost) for your firm is AC = (800/Q) – 10 +2Q:
a. What is the total cost function for your firm in terms of Q?
b. How would you interpret the intercept term in this function?
c. What is the marginal cost function for your firm?
d. At what level of output (Q) is AC minimized?
e. Is MC always less than AC?

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