Imagine that you are an entrepreneur,making designer t-shirts in your garage.Your accountant has estimated that your firm's total costs can be expressed by the function TC = 300 + 10 × Q,where Q represents the number of t-shirts you make.
Your fixed costs are _______ and your marginal cost is _____.

Question

Quizplus · Accepted Answer

When total costs are expressed as an equation,the constant term is the fixed cost and the term that varies with Q,or quantity,is variable cost.If Q increases by one unit,total cost increases by 10.Fixed cost does not change when Q changes.

Imagine That You Are an Entrepreneur,making Designer T-Shirts in Your