An average variable cost function is estimated as $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$ Which of the following cost functions is associated with this estimate? A) SMC = 96 - 4Q + 0.1Q² B) TVC = 96Q - 2Q² + 0.05Q³ C) TVC = 96Q + 4Q² + 0.15Q³ D) SMC = 96 - 4Q + 0.15Q² E) both b and d

Question

Quizplus · Accepted Answer

The marginal cost function is the derivative of the total variable cost function. So, the correct answer is both b and d.

An Average Variable Cost Function Is Estimated As AVC=96−2Q+0.05Q2A V C = 96 - 2 Q + 0.05 Q ^ { 2 }AVC=96−2Q+0.05Q2

An Average Variable Cost Function Is Estimated As $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$