1. For a cost function C = 100+10Q + Q$^2$, what is the average fixed cost of producing 10 units
of output?
2. According to the table below, what is the average variable cost of producing 50 units of
output?
Q FC VC
0 1,000 0
20 1,000 350
50 1,000 700
90 1,000 1,050
125 1,000 1,400
145 1,000 1,750
160 1,000 2,100
3. Given a cost function C(Q) = 200+ 14Q+8Q$^2$, what is the marginal cost of producing the 10$^{th}$
unit of output?
4. The multiproduct TC function is given by: TC(Q1, Q2)=2-0.5Q1Q2-(Q1)$^2$+(Q2)$^2$.
According to this TC function, producing 4 unit of product 2 will decrease the marginal cost of
making product 1 by how much?
5. For the cost function C(Q) = 100+2Q+3Q$^2$, what is the total variable cost of producing 2
units of output?
6. What is the value of X in the table below?
Quantity Total Fixed Variable Marginal Average Average Average
Cost Cost Cost Cost Fixed Variable Total
Cost Cost Cost
0 $50 $50 $0 -- -- -- --
1 $150 $50 $120 $120 $120
2 X
3
7. The company's total cost function is given by TC=1000+14Q-8Q$^2$ + 2Q$^3$. Knowing this,
please address all of the following:
a. Minimize AVC and calculate the minimal amount of AVC.
b. Find the AFC at the optimal Q level you found in (a).
c. What did the last unit of optimal output cost to produce
