Suppose a cost function is TC = Aq³ + bq² + cq + d then the average variable cost is

Name: Suppose a cost function is TC = Aq 3 + bq 2 + cq + d then the average variable cost is
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Quizplus · Accepted Answer

The average variable cost is calculated as the total variable cost (TVC) divided by the quantity (q). Since TVC in this cost function is represented by bq² + cq, the average variable cost can be written as (bq² + cq)/q. Simplifying this expression yields Aq² + bq + c / q. This matches option B.

Suppose a Cost Function Is TC = Aq3 + Bq2

Suppose a Cost Function Is TC = Aq³ + Bq²