If total cost is given by TC = a + bQ - cQ² + dQ³,then average variable cost is minimized at ________units of output. A) Q^* = a/2d B) Q^* = b/2d C) Q^* = c/3d D) Q^* = c/2d E) Q^* = d/2c

Question

Quizplus · Accepted Answer

To find the minimum point of average variable cost, we need to differentiate TC with respect to Q and set it equal to zero. This gives us: d(TC)/dQ = b - c² + d³ = 0 Solving for ^*, we get: ^* = (c - b)/(2d) Therefore, the answer is D.

If Total Cost Is Given by TC = a