If a company has a cost curve of TC = 300 + 2Q + Q² and it produces 300 units per day,then its average (total)cost is A)$1. B)$303. C)$300. D)$602.

Question

Quizplus · Accepted Answer

The total cost (TC) formula given is TC = 300 + 2Q + Q, which simplifies to TC = 300 + 3Q when considering Q as the quantity produced. To find the average total cost (ATC), we divide the total cost by the quantity produced. Substituting Q with 300 units, we get TC = 300 + 3(300) = 300 + 900 = 1200. The average total cost is then 1200 / 300 = $4. However, since none of the provided options match this calculation, it appears there was a misunderstanding in interpreting the options based on the calculation provided. The correct calculation method shows an average cost that does not match the given options, suggesting a possible error in the question or the interpretation of the formula.

If a Company Has a Cost Curve of TC =