Question: you are given the following cost functions tc10060q3q2 01q3 tc...
You are given the following cost functions:
TC=100+60Q-3Q2 +0.1Q3 TC = 100 + 60Q + 3Q2
TC = 100 + 60Q
1. Compute the average variable cost, average cost, and marginal cost for each function. Plot them
on a graph.
2. In each case, indicate the point at which diminishing returns occur. Also indicate the point of
maximum cost efficiency (i.e., the point of minimum average cost).
3. 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.