Suppose a cost function is TC = Aq³ + bq² + cq +d. Then the total fixed cost is A)Aq²+ bq + cq +d/q B)Aq² + bq + c C)Aq³ + bq2 + cq D)d

Question

Quizplus · Accepted Answer

Total fixed costs are those costs that do not vary with the level of output. In the given cost function TC = Aq³ + bq² + cq +d, the term "d" does not depend on the quantity (q) and thus represents the total fixed cost.

Suppose a Cost Function Is TC = Aq3 + Bq2

Suppose a Cost Function Is TC = Aq³ + Bq²