Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q₂, where Q is the quantity of dogs groomed.Given this expression, Janet is operating in the:
A)long run.
B)short run, and her fixed costs are equal to $100.
C)long run, and her fixed costs are equal to $100.
D)short run, and there are no fixed costs.

Question

Quizplus · Accepted Answer

In the short run, at least one factor of production (such as the size of the salon or the amount of equipment) is fixed. Janet's fixed costs are equal to $100, as indicated by the constant term in the total cost equation. Therefore, the correct choice is B.

Janet's Poodle Grooming Salon Has a Total Cost Curve Expressed