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Example Cost

The document provides examples of cost functions, including total cost, marginal cost, and average cost for various equations. Each example illustrates the relationships between total cost, marginal cost, and average cost, with specific formulas and graphs. The examples highlight different forms of cost functions, showcasing how they change with varying quantities (q).

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hatermadness2
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4 views3 pages

Example Cost

The document provides examples of cost functions, including total cost, marginal cost, and average cost for various equations. Each example illustrates the relationships between total cost, marginal cost, and average cost, with specific formulas and graphs. The examples highlight different forms of cost functions, showcasing how they change with varying quantities (q).

Uploaded by

hatermadness2
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Examples of cost function

1) Total cost: T C(q) = 10 + 10q


dT C(q)
Marginal cost: M C(q) = dq = 10
T C(q) 10+q+q 2
Average cost: AC(q) = q = q = 10
q + 10

where AV C(q) = 10 and AF C(q) = 10


q

14

12

10

0 2 4 6 8 10 12 14 16 18 20
q

2) Total cost: T C(q) = 10 + q + q 2


dT C(q)
Marginal cost: M C(q) = dq = 1 + 2q
T C(q) 10+q+q 2
Average cost: AC(q) = q = q = 10
q +1+q

where AV C(q) = 1 + q and AF C(q) = 10


q

1
14

12

10

0 2 4 q6 8 10 12

3) Total cost: T C(q) = 10 + 10q − 4q 2 + q 3


Marginal cost: M C(q) = dTdqC(q)
= 10 − 8q + 3q 2
T C(q) 10+10q−4q 2 +q 3
Average cost: AC(q) = q = q = 10
q + 10 − 4q + q 2
where AV C(q) = 10 − 4q + q 2 and AF C(q) = 10
q

14

12

10

0 1 2 3 4 5
q

2
4) Total cost: T C(q) = 10 + 10q 2
dT C(q)
Marginal cost: M C(q) = dq = 20q
2
Average cost: AC(q) = T C(q)
q = 10+10q
q = 10
q + 10q
where AV C(q) = 10q and AF C(q) = 10 q

40

30

20

10

0 1 2 3 4 5
q

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