Homework Answers
From the AVC find the VC by using the rule VC = AVC * Q
VC = 15Q + 0.02Q^2
Now Total cost = TC = FC + VC
TC = 350000 + 15Q + 0.02Q^2
ATC or average total cost = TC/Q = 350000/Q + 15 + 0.02Q
Now TC (Q = 5000) = 350000 + 15*5000 + 0.02*(5000^2) = $925,000
And ATC = 350000/5000 + 15 + 0.02*5000 = $185
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