Suppose a firm's total cost curve is TC = 5Q² + 6Q + 125. The firm's average total cost is ATC = ____. A) 10Q + 6 B) 5Q + 6 + (125/Q) C) 5Q + 6 D) 5Q² + 6Q

Question

Quizplus · Accepted Answer

The average total cost (ATC) is found by dividing the total cost (TC) by the quantity (Q). Given TC = 5Q + 6Q + 125, ATC = (5Q + 6Q + 125) / Q = 5 + 6 + 125/Q, which simplifies to 5Q + 6 + (125/Q).

Suppose a Firm's Total Cost Curve Is TC = 5Q2

Suppose a Firm's Total Cost Curve Is TC = 5Q²