Fill This Form To Receive Instant Help
Homework answers / question archive / Loco Pony Adventures rents clowns and ponies for children's birthday parties
Loco Pony Adventures rents clowns and ponies for children's birthday parties. If the annual total cost of furnishing entertainment is given by TC = 0.5Q2 + 25Q + 1,000, the average variable cost of catering to 30 birthday parties is
The total cost is calculated as:
Given the total cost function:
The fixed cost will be determined when Q = 0.
Therefore, the variable cost will be equal to:
The variable cost of catering to Q = 30 birthday parties is equal to:
Thus, the average variable cost of catering for 30 birthday parties is equal to: