Suppose a cost function is TC = Aq³ + bq² + cq + d then the average total cost is A) Aq² + bq + cq +d/q B) Aq² + bq + c C) Aq³ + bq² + cq D) d

Name: Suppose a cost function is TC = Aq 3 + bq 2 + cq + d then the average total cost is A) Aq 2 + bq + cq +d/q B) Aq 2 + bq + c C) Aq 3 + bq 2 + cq D) d
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Quizplus · Accepted Answer

The average total cost is the total cost divided by the quantity produced. So, ATC = TC/q = (Aq³ + bq² + cq + d)/q = Aq² + bq + c + d/q.

Suppose a Cost Function Is TC = Aq3 + Bq2

Suppose a Cost Function Is TC = Aq³ + Bq²