Suppose a firm's total cost function is given by TC = 6,000 + 2Q + 0.25Q², where MC = 2 + 0.5Q. The output level that minimizes variable cost is ____. A) 154.9 B) 175 C) 150 D) 0

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Variable cost is minimized when output (Q) is zero, as the variable cost portion of the total cost function increases with Q. The given total cost function includes a fixed cost component (6,000) and a variable cost component (2Q + 0.25Q^2). The marginal cost (MC) function, which is the derivative of the variable cost portion of the total cost function with respect to Q, does not influence the point at which variable cost is minimized.

Suppose a Firm's Total Cost Function Is Given by TC