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Suppose Kate's Great Crete (KGC)has Annual Variable Costs of VC

Question 3

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Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q,where Q is the number of cubic yards of concrete it produces per year.In addition,it has an avoidable fixed cost of $50,000 per year.KGC's demand function is Qd = 20,000 - 400P.What is KGC's total cost function?


A) TC = 50,030 + 30.005Q + 0.0025Q2
B) TC = 50,000 + 50Q - 0.0025Q2
C) TC = 20,000 - 400P
D) TC = 50,000 + 30Q + 0.0025Q2

Correct Answer:

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