Suppose a firm's total cost curve is TC = Q² + Q + 100. The firm's average total cost is ATC = ____. A) Q² + Q + 100 B) 2Q + 1 C) Q + 1 + (100/Q) D) Q + 1

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Quizplus · Accepted Answer

Average Total Cost (ATC) is calculated by dividing the Total Cost (TC) by the quantity produced (Q). Given TC = Q² + Q + 100, the formula for ATC simplifies to ATC = (Q² + Q + 100) / Q, which further simplifies to ATC = Q + 1 + (100/Q) when considering the standard form of expressing average total cost.

Suppose a Firm's Total Cost Curve Is TC = Q2

Suppose a Firm's Total Cost Curve Is TC = Q²