Answer on Macroeconomics Question for Anu
Derive Average cost function.
is also equal to the sum of average variable costs (total variable costs
divided by Q) plus average fixed costs (total fixed costs divided by Q).
Average costs may be dependent on the time period considered (increasing
production may be expensive or impossible in the short term, for example).
Average costs affect the supply curve and are a fundamental component of supply
ATC = TC/Q
ATC = x^2 - 5x + 60
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!