COST STRCTURE and PRICING Sting Ray PoolVac Inc manufactures

COST STRCTURE and PRICING: Sting Ray PoolVac, Inc. manufactures and sells a single product called the

Solution

2. Given your answer in 1, show the estimated total variable cost, average variable cost, and marginal cost functions (TVC, AVC, and MC) for PoolVac. (15%)

TVC = 152.8806   Q - 0.06141Q^2 +0.00002181 Q^3

AVC = 152.8806 - 0.06141Q+0.00002181 Q^2

MC = 152.8806 - 0.06141Q+0.00006543 Q^2

hen AVC is minimum, the MC =0. So Qmin = -b/2c=1407.6, AVCmin =109.6