COST FUNCTION

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COST FUNCTION

1.       The total cost function of a firm is given by C =2/5X   +  49/2

Where C is total cost and x is the units of output.

Find  i) total cost when output is 100 units  ii) AC when output is 250 units

iii) MC when output is 75 units

 

2.                   If the cost function is given by : C= 1000+100x-50x2 +1/3 x 3

Find out i) MC and Slope of MC curve ii)ATC function and iii) the value of x when AVC=MC

 

3.       Given the following information, determine the equations for TFC, AFC, TVC,AC,TC,AC & MC

1)       X=20l, WHERE X=units of output and L=units of labour

2)       Price of variable input = Rs.10

3)       50 units of fixed inputs are used

4)       Price of fixed inputs equals Rs.100/unit

5)        

4. Given TC = 4000+30 x -12x 2 ++x 3

i) Find TFC and AFC when X = 1000, AND When X =8000

II) Find TVC at output level 40

iii) Find AC and MC for 40 units of output

iv) Find the value of x where diminishing marginal returns begins

v) At what rate of output does Stage II of production begin?

5. Cost function C = 0.2x3 – x2 +5x +20

                Find the following from the above cost function

i)                     ATC         2) Slope of ATC     iii) MC     IV) Slope of MC     V) AVC

VI) Output for which AVC is minimum

6. Total Cost function C = 2q-2q2  + Q3

                        Find the Average Cost function        ii)find marginal cost function

iii)Show the minimum of AC, AC=MC

7. Total Cost function C = 4q-q2 +2 Q3  Find AC, MC, Prove AC=MC at the minimum of AC

8.  Cost function  c= 120+4q-4q2 +0.3q3  , the MC when Q=10 is ------------

9.    (QUESTION PAPER – April 2007)

Calcutta Instruments Ltd. Estimates its total cost of manufacturing of electronic gauges per month and

Y = 8000+300x+0.1X2

a)       Calculate the average cost of producing 200 gauges per month. If the company doubles this output will it have its average cost.

b)       What will be the marginal cost function of the company?

c)       How much is the average variable cost of producing 200 units per month? What will be the average variable cost if no units are produced?

 

 

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