Answer Summary

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.

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