The manager of the Electronic Corporation has estimated the total variable costs and thetotal fixed cost functions for producing a particular type of camera to be:
TVC = 60Q-12Q2 + Q3
TFC = 100
The corporation sells the camera at the price of $60 each. An engineering study justpublished estimated that if the corporation employs newly developed technology, thelong-run total cost function would be
TC= 50 + 20Q + 2w +3r.
The manager asks you to find AVC and MC functions, the output level at which the two curves cross, and a plot of them.