The total cost equation in the production of bacon at some hypothetical factory is C = 1000 + 100Q – 15Q2 + Q3 Where C = Cost...

      

The total cost equation in the production of bacon at some hypothetical factory is
C = 1000 + 100Q – 15Q2 + Q3
Where C = Cost measured in shillings, while Q = quantity measured in kilograms.
Compute the total and average costs at output level of 10 and 11 kilograms.

  

Answers


Wilfred
i) Total cost
At Q = 11 TC = 1000 +100(11) – 15(11)2 + (11)3
TC = 1000 + 1100 – 1815 + 1331
TC = 1616

At Q = 10 TC = 1000 + 100 (10) – 15(10)2 + (10)3
TC = 1000 + 1000 – 1500 + 1000
TC = 1500

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Wilfykil answered the question on February 6, 2019 at 10:27


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