Unformatted text preview: But from (a) we know Q=12L. In other words, L=(1/12)Q. If you plug this into TC, then TC= 12+24*(1/12)Q = 8+2Q. c. Total Cost (TC) can be also expressed as TC=FC+VC, where FC is the fixed cost and VC is the variable cost. How can you express FC as function of Q? How can you express VC as function of Q? FC = 8; VC = 2Q d. Average Cost (AC) is TC/Q. Calculate AC. Then calculate the Average Fixed Cost (AFC) and the Average Variable Cost (AVC). How can you express AC, AVC and AFC as function of Q? A(T)C = (TC/Q) = (8+2Q)/Q = (8/Q) +2 AVC = (VC/Q) = 2Q/Q = 2; AFC = (FC/Q) = (8/Q) e. Marginal Cost (MC) is . Calculate MC. L Q TC FC VC...
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This document was uploaded on 02/06/2014.
 Spring '14
 Microeconomics

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