The cost function C(y) = 10 + 3y has marginal cost less than average cost for all levels of output.

Name: The cost function C(y) = 10 + 3y has marginal cost less than average cost for all levels of output.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

The average cost is given by C(y)/y, which simplifies to (10/y) + 3. The marginal cost is the derivative of the cost function, which is 3. Thus, the marginal cost is constant and is less than the average cost for all values of y. Therefore, the statement is true, and the answer is A.

The Cost Function C(y) = 10 + 3y Has Marginal