you are given the following data for your firm, which sells high-capacity video

Question

you are given the following data for your firm, which sells high-capacity video MP3 players.

Which of the following equations is correct, based on the data above?

Select one:

a. ATC=Q23Q+536+1500QATC=Q23Q+536+1500Q

b. MC=0.5Q21.5Q+268MC=0.5Q21.5Q+268

c. AVC=Q33Q2+536Q+1500QAVC=Q33Q2+536Q+1500Q

d. AVC=Q29Q+536Q+1500

Q P TC 0 $1,000 $1,500 2 $960 $2,568 4 $920 $3,660 6 $880 $4,824 8 $840 $6,108 10 $800 $7,560 12 $760 $9,228 14 $720 $11,160 16 $680 $13,404 18 $640 $16,008 20 $600 $19,020

1. Determine equations for P = f(Q), M R = f(Q), ATC = fQ. Q2). Avc = fO.Q ), MC-fQ.Q). Recall that your marginal equations should be derivatives of your totals

Explanation / Answer

From the table we can find the demand function:

y = mx + c

y = ((y2-y1)/(x2-x1))x + c

put any two points to find the value of m and c.

we have equation:

P = 1000 - 20Q

From the graph, we have a cost function:

TC = 108Q2 + 322.6Q + 1500

MR = d(P*Q) / dQ

MR = d(1000Q - 20Q2)/dQ

MR = 1000 - 40Q

ATC = TC / Q

ATC = 108Q + 322,6 + 1500/Q

VC = TC - FC

VC = 108Q2 + 322.6Q

AVC = VC/Q

AVC = 108Q + 322.6

MC = d(TC)/dQ

MC = 216Q + 322.6

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