Given total cost function:

TC=2q2+100TC=2q2+100

1) Average total cost is the total cost per unit of labor.

• ATC = TC/Q

ATC=(2q2+100)/qATC=(2q2+100)/q

• ATC=2q+100/qATC=2q+100/q

2) Variablecost=2q2Variablecost=2q2

Variable cost increases with increase in the output.

3) Marginal cost is the additional cost incurred by producing one more unit of output. It is calculated by differentiating total cost function with respect to output.

• MC=dTC/dQMC=dTC/dQ

• MC=4q