If STC = 3q²+ 7q, then: A)VC = 0. B)ATC = AFC. C)FC = 7. D)ATC = AVC.

Question

Quizplus · Accepted Answer

ATC (Average Total Cost) is the total cost of production per unit of output. AVC (Average Variable Cost) is the variable cost of production per unit of output. In the given formula, "3q²" represents the variable cost of production, while "7q" represents the fixed cost of production. Therefore, ATC = 3q²+ 7q/q = 3² + 7, and AVC = 3q²/q = 3². Since the fixed cost per unit of output is constant, ATC and AVC will be equal only if FC is 0, which is not the case here. Therefore, the correct answer is D, and ATC is not equal to AFC or VC. FC can be calculated by subtracting AVC from ATC, which gives: FC = ATC - AVC = (3² + 7) - 3² = 7.

If STC = 3q2 + 7q, Then

If STC = 3q²+ 7q, Then