# Average Variable Cost

1.) For each of the following cost functions, find Marginal Cost, Average Cost and Average Variable Cost.a. TC = 20,000 + 10 Qb. TC = 18,000 + Q + 0.2 Q22.) Given the Total Cost Function TC = 100 + 40Q – 15Q2 + 5Q3, calculate thea. Average Fixed Cost (AFC)b. Average Variable Cost (AVC)c. Marginal Cost (MC)3.) For each of the following cost functions, if possible, find the Minimum Average Total Cost and Minimum Average Variable Cost.a. TC = 20,000 + 10 Qb. TC = 18,000 + Q + 0.2 Q24) A monopolist has Demand and Total Cost curves given by followingequations:QDm = 10,000 – 20PTC = 1,000 + 10Q + .05Q2a. Find the monopolist’s profit-maximizing quantity and price.b. Find the monopolist’s profit.5) A perfectly competitive firm has Total Revenue and Total Cost curves given by the following equations:TR = 100QTC = 5,000 + 2Q + 0.2 Q2a. Find the profit-maximizing output for this firm.b. What profit does the firm make?6) A Monopolist’s Demand function is P = 1624 – 4Q, and its Total Cost function isTC = 22,000 + 24Q -4Q2 + 1/3 Q3, where Q is the output produced and sold.a. At what level of output and sales (Q) and price (P) will total profits be maximized?b. At what level of output and sales (Q) and price (P) will total revenue be maximized?c. At what price (P) should the monopolist shut down?

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