If STC = q²- q + 3, then: A)AVC = q - 1 and FC = 3. B)AVC = q- 1 + 3/q and SMC = 2q - 1. C)SMC = 2q - 1 and VC = q². D)FC = - q + 3 and AVC = q.

Question

Quizplus · Accepted Answer

STC stands for Short-Term Costs, which can be broken down into Fixed Costs (FC) and Variable Costs (VC). The equation given suggests that STC equals a variable component (q²) plus a constant (-q + 3). Therefore, FC, which does not depend on q, is -q + 3 when q is 0, simplifying to 3. AVC (Average Variable Cost) is the variable part of the cost divided by q, which simplifies to q - 1 when excluding the constant term.

If STC = Q2- Q + 3, Then

If STC = Q²- Q + 3, Then