Computing all cost curves

Reference no: EM1371733

Cost Data (Excel application)

TC = 20 + 4Q

TC = 20 + 2Q + 0.5Q2

TC = 20 + 4Q - 0.1Q2

Using Excel, calculate all cost curves using a range of quantity from 0 to 15.
Total cost
Total fixed Cost
Total variable cost
Average total cost
Average fixed cost
Average variable cost
Marginal cost

Plot these curves on graphs

Compare the cost curves and discuss their characteristics.

Solution Guide

To calculate the average and marginal costs, use the following formulas:
ATC = TC÷Q
AFC = TFC÷Q
AVC = TVC÷Q
MC = change in TC ÷ change in Q

Using the numbers in the tables, plot the different cost curves using Excel graphing features.

The cost numbers are plotted on the vertical axis (y).

The quantity numbers are plotted on the horizontal axis (x).

Reference no: EM1371733

Questions Cloud

Explain about external environment : Provide a company's management to improve the company's successful expansion into China - Explain about external environment

Determine optimal output and pricing policy : In 1991 and 1994, Apple Computer engaged in a holding action in desktop market dominated by PCs using Intel chips and running Microsoft's operating systems.

Determining profit outcome : A firm is making production plans for upcoming quarter, but the manager doesn't know what the price of the product will be next month. She thinks there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.

Explain the methods used in recruitment : Prepare at least one strategic metric that could be used to assess the effectiveness of that program - show how this relates to the organization's strategy, and how it might differ from a benchmarking metric for the same program.

Computing all cost curves : Plot these curves on graphs. Compare the cost curves and discuss their characteristics.

Caring for workers : Several big companies offer employees time off during the workday to attend seminars on how to improve their health. Some even give bonuses to people who show that they are adopting healthy lifestyles through,

Hypothetical short-run production function : Employ the following information on hypothetical short-run production function to answer questions a-d. Compute the marginal and average variable product of each unit of labor input. Hint: plot your Units of labor and Units of Output vertically.

Show the decision impacts on stakeholders : From an Ethical Rights perspective, whose rights are potentially violated both with and without EPA enforcement and how

Recycling money loosing proposition : From an economic perspective, reprocessing is a money loosing proposition since we derive negative profits from it.

User Account

All Pages