Question

1. Ali produces paper for sale which requires building and a machine. He pays building rent $ 30 and rents a machine for $ 40 Those are his fixed assets. His other cost can be find with help of given equation

AF= 70/Q

VC = 5Q+ Q²

TC = 70+ 5Q+ Q²

AVC= 5+Q

Calculate and Graph Ali’s TC, VC, average variable cost, average total cost, marginal cost for quantity 0-100 with a difference of 10.

Answer 1

TC = 70 + 5Q + Q2

VC = 5Q + Q2

AVC = 5 + Q

ATC = TC/Q = (70/Q) + 5 + Q

MC = dTC/dQ = 5 + 2Q

Data table:

Q	FC	TVC	TC		AFC	AVC	ATC	MC
0	70	0	70
10	70	150	220		7	15	22	25
20	70	500	570		3.5	25	28.5	45
30	70	1050	1120		2.33	35	37.33	65
40	70	1800	1870		1.75	45	46.75	85
50	70	2750	2820		1.4	55	56.4	105
60	70	3900	3970		1.17	65	66.17	125
70	70	5250	5320		1	75	76	145
80	70	6800	6870		0.875	85	85.875	165
90	70	8550	8620		0.78	95	95.78	185
100	70	10500	10570		0.7	105	105.7	205

Graph: