The given equation P=60-Q describes the demand of a company’s output, where P is the demand, and Q is the quantity produced. The fixed cost of producing a good is 100, and the variable cost of producing a good is Q+6. The total cost, TC, can be expressed as a function of Q, and the average cost is given by AC=Q+6+100/Q.

## Fixed Cost

The fixed cost of producing a good is 100. This cost does not vary with the quantity produced, and will be the same no matter how much or how little is produced.

## Variable Cost

The variable cost of producing a good is Q+6. This cost varies with the quantity produced, and will be higher or lower depending on how much is produced.

## Total Cost

The total cost, TC, can be expressed as a function of Q, and is given by TC=Q+6+100. This equation shows that the total cost is the sum of the fixed cost and the variable cost.

## Average Cost

The average cost is given by AC=Q+6+100/Q. This equation shows that the average cost is the total cost divided by the quantity produced.

## Related Questions

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