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Suppose the restaurant’s cost function for shrimp balls is C(Q) = 2500 + Q + Q2, and the marginal cost curve is therefore MC(Q) = 1 + 2Q.
(a) What is the variable cost function?
(b) What is the average variable cost function?
(c) What is the average cost function?
(d) At what quantity is the average cost is minimized? What is the associated cost at this quantity?
(e) At what quantity is the average variable cost is minimized?
(f) What is the restaurant’s individual supply function?
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