Suppose a firm's short run total cost curve can be expressed as S $T C ( Q ) = 50 Q + 10$ . This firm's short-run average total cost curve can be expressed as
A) $50 + 10 / Q$ .
B) $50 Q$ .
C) 50.
D) 10.

Question

Quizplus · Accepted Answer

In order to derive the short-run average total cost curve, we need to divide the short-run total cost curve by the level of output, Q. Hence, ATC = (50Q + 10)/Q = 50 + 10/Q. Therefore, the correct answer is A.

Suppose a Firm's Short Run Total Cost Curve Can Be TC(Q)=50Q+10T C ( Q ) = 50 Q + 10TC(Q)=50Q+10

Suppose a Firm's Short Run Total Cost Curve Can Be $T C ( Q ) = 50 Q + 10$