Answers generated in Excel: No need to answer the questions as I already did the

Question

Answers generated in Excel:

No need to answer the questions as I already did the calculations in excel. But I would like to know if there are any apparent errors in my calculations. My program is accelerated and my professor takes awhile to respond to emails. I have to write a paper on how I made the calculations so I would like to know if I made any errors.

Here are the formulas I used: AVC= VC/ output (i.e 1, 2 , 3, 4, 5...)

VC=100-TC

AFC = Fixed cost/output

ATC = total cost/ output (Q)

MC = Change in total cost/ change in output

TC 100+600-302+0.1Q3 TC 100+ 60Q+3Q TC=100 + 60Q a) Compute the average variable cost, average cost and marginal cost for each function. Plot them on a graph. b) In each case, indicate the point at which diminishing returns occur. Also, indicate the point of maximum cost efficiency (iel the point of minimum average cost). c) For each function, discuss the relationship between marginal cost and average variable cost and between marginal cost and average cost. Also discuss the relationship between average variable cost and average cost.

Explanation / Answer

AVC is fine

VC = TC-100, as TC = FC+VC = 100+VC,

AFC is fine

ATC is fine

MC is fine

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