Examples of cost function

1) Total cost: T C(q) = 10 + 10q

dT C(q)
Marginal cost: M C(q) = dq = 10
T C(q) 10+q+q 2
Average cost: AC(q) = q = q = 10
q + 10

where AV C(q) = 10 and AF C(q) = 10

q

14

12

10

0 2 4 6 8 10 12 14 16 18 20
q

2) Total cost: T C(q) = 10 + q + q 2

dT C(q)
Marginal cost: M C(q) = dq = 1 + 2q
T C(q) 10+q+q 2
Average cost: AC(q) = q = q = 10
q +1+q

where AV C(q) = 1 + q and AF C(q) = 10

q

1
 14

12

10

0 2 4 q6 8 10 12

3) Total cost: T C(q) = 10 + 10q − 4q 2 + q 3

Marginal cost: M C(q) = dTdqC(q)
= 10 − 8q + 3q 2
T C(q) 10+10q−4q 2 +q 3
Average cost: AC(q) = q = q = 10
q + 10 − 4q + q 2
where AV C(q) = 10 − 4q + q 2 and AF C(q) = 10
q

14

12

10

0 1 2 3 4 5
q

2
4) Total cost: T C(q) = 10 + 10q 2
dT C(q)
Marginal cost: M C(q) = dq = 20q
2
Average cost: AC(q) = T C(q)
q = 10+10q
q = 10
q + 10q
where AV C(q) = 10q and AF C(q) = 10 q

40

30

20

10

0 1 2 3 4 5
q