the following are ac and tc functions for various

Question

The following are AC and TC functions for various firms

(i). AC = 140/Q + 20

(ii) AC - a/Q = k

(iii) TC - 10 =2Q + 0.1Q²

(iv) TC - k - βQ = cQ²

Where a, k, β and c are positive constants.

(a)   Find the expression for the gradients of the AC functions

(b)   For what values of Q will AC be decreasing?

(c)   Which functions will give U-shaped AC curves?