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Economists estimated the following cost function for X Company
C = 50 + 16 Q - 2 Q² + 0.2 Q³C = Total CostQ = Quantity produced per period
a. Plot the TFC, TFC and TC for the values of Q = 0, 1, 2, 3,.......... 10b. Calculate the ATC, AVC and MTC and plot on another graph.c. Explain the relationships between ATC and MTCd. Discuss the results in terms of the decreasing, constant and increasing marginal costs.e. Mathematically calculate the level of output at which MC is at minimum.f. Mathematically calculate the level of output at which ATC = MC and AVC = MC. Which intersect ion happens at a lower level of activity?
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