2. Suppose a business has an input-output relationship, namely:
0.2Q³ -4Q² + 28Q = L
Suppose labour costs £10 per hour and the business had fixed capital costs of£1000 per day.
Derive the equations which describe the following:
i) total variable cost;
ii) total fixed cost;
iii) total cost;
iv) average variable cost;
v) average fixed cost;
vi) average total cost;
vii)marginal cost.
Sketch each of these curves, roughly but accurately.
