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How do you derive the total cost function from the average cost function?
Wiki User
∙ 14y ago
Average cost = Total cost / number of units of a good produced.
So Total cost = Average cost X No. of units of a good produced
Wiki User
∙ 14y ago
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How do you derive a cost function for a production function?
derive cost function from production function mathematically, usually done by utilizing mathematical optimization methods.
Find the marginal and the average cost function for the following total cost function?
Find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q = 4 and Q = 6.
Find you the marginal and the average cost functions for the following total cost function Calculate them at Q4 and Q6 TC3Q2 7Q 12?
find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q=4 and Q=6, TC=3Qsquare + 7Q + 12 Avg=25 Marginal cost=24 Total cost = if Q=4 = 88 & if Q = 6 * 162
Equation for marginal cost and average cost?
Marginal cost - the derivative of the cost function with respect to quantity. Average cost - the cost function divided by quantity (q).
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
How do you derive a cost function for a production function?
derive cost function from production function mathematically, usually done by utilizing mathematical optimization methods.
Find the marginal and the average cost function for the following total cost function?
Find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q = 4 and Q = 6.
Find you the marginal and the average cost functions for the following total cost function Calculate them at Q4 and Q6 TC3Q2 7Q 12?
find (i) the marginal and (2) the average cost functions for the following total cost function. Calculate them at Q=4 and Q=6, TC=3Qsquare + 7Q + 12 Avg=25 Marginal cost=24 Total cost = if Q=4 = 88 & if Q = 6 * 162
Equation for marginal cost and average cost?
Marginal cost - the derivative of the cost function with respect to quantity. Average cost - the cost function divided by quantity (q).
What is the formula to find the average variable cost?
Average Variable Cost = Total Variable Cost/ Quantity Average Cost = Average Fixed Cost + Average Variable Cost Average Cost = Total Cost/Quantity
DO Average cost always falls as output increases because fixed costs will be spread more thinly?
Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.
How will get total cost function form marginal cost function?
Find the integral of the marginal cost.
What is cost What is the difference between total cost and average cost?
Average total cost is the average of all your costs. This is your Fixed Costs and your Variable costs. Average Variable Cost is the average of your costs that can fluctuate.
6 If the average total cost curve is falling what is necessarily true of the marginal cost curve If the average total cost curve is rising what is necessarily true of the marginal cost curve?
When average total cost curve is falling it is necessarily above the marginal cost curve. If the average total cost curve is rising, it is necessarily below the marginal cost curve.
If average total cost is greater than marginal cost average total cost must be increasing is the true or false?
true
What is the Average Cost method of inventory valuation?
Average Cost Method: Under this method average cost is calculated by following farmula:Average cost of unit= Total cost of inventory / total number of units
What is the relationship between marginal cost and average cost curves?
Margianal cost curve crosses the average total cost curve at the lowest point on the average total cost curve to be socially and ecomonical efficient.
