average variable cost function is estimated as 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

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Quizplus · Accepted Answer

The average variable cost function is typically represented by TVC/Q or (TVC)/(Q). Looking at the options, only B and D have TVC/Q as a variable, but we also need to include the constant term. The only combination of these is options B and D. Both B and D have a constant term of 96, and the coefficients for Q² match the estimate of 11. Option B has a coefficient of -2 for Q², which doesn't match the estimate, while option D has a coefficient of 0.15 for Q², which does match the estimate. Therefore, the best choice is E, which includes both options B and D.

Average Variable Cost Function Is Estimated as Which of the Following