Consider the following equations/functions:
TC = 20 + 4Q
TC = 20 + 2Q + 0.5Q2
TC = 20 + 4Q - 0.1Q2
Calculate the following for all three cost equations/functions:
Total cost
Total fixed cost
Total variable cost
Average total cost
Average fixed cost
Average variable cost
Marginal cost
Plot these curves on graphs.
Compare the shapes of these curves and discuss their characteristics. (Particularly interesting is the marginal cost function, which is also often found in engineering cost studies.)
Show all of your work (how you arrived at the answers).