Write an expression for variable costs and marginal costs

Reference no: EM133277874

Question - A firm producing chairs and operating in a perfectly competitive market faces a technology with decreasing marginal cost up to a daily production of 2 output units, constant marginal cost from 2 to 5 units, and increasing marginal cost above the level of 5 units per day. We are interested in the increasing marginal cost portion of the production process only. For quantities greater or equal to 5, total costs are given by ?C = 288 + 52? + 2?. Fixed costs amount to ?C = 160 per day (not 2881), and correspond to rental payments that cannot be recovered for at least one year.

Write an expression for variable costs, marginal costs, average variable costs and average total costs for quantities greater than 5.

Reference no: EM133277874

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