Suppose the cost function is C(Q)= 50 + Q − 10Q² + 2Q³.What are the fixed costs? A) $50 B) $10 C) $1 D) $2

Question

Quizplus · Accepted Answer

The fixed costs are the cost which do not vary with the level of output. In the given cost function, the term which does not depend on Q is 50. Hence, the fixed costs are $50.

As there is no information given about the market demand or the price, we cannot determine the best choice(s) based on this cost function alone.

Suppose the Cost Function Is C(Q)= 50 + Q −