Scribd
Upload
49 views

Examplecost PDF

The document provides 4 examples of cost functions, each with the total cost, marginal cost, and average cost equations. The total cost equations include linear, quadratic, cubic, and squared terms. The marginal cost is the derivative of the total cost function. The average cost is the total cost divided by quantity. Graphs are also provided to illustrate each cost function.

Uploaded by

Tim Chan
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
49 views

Examplecost PDF

The document provides 4 examples of cost functions, each with the total cost, marginal cost, and average cost equations. The total cost equations include linear, quadratic, cubic, and squared terms. The marginal cost is the derivative of the total cost function. The average cost is the total cost divided by quantity. Graphs are also provided to illustrate each cost function.

Uploaded by

Tim Chan
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
You are on page 1/ 3

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

You might also like