If TC = 1,500 + 7.5Q + Q², the cost function for AVC is AVC = ____. A) 1,500/Q B) 7.5 + Q C) 1,500/Q + 7.5 + Q D) Q

Name: If TC = 1,500 + 7.5Q + Q 2 , the cost function for AVC is AVC = ____. A) 1,500/Q B) 7.5 + Q C) 1,500/Q + 7.5 + Q D) Q
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The average variable cost (AVC) is derived from the variable cost portion of the total cost (TC) function. In the given TC function, 7.5Q + Q² represents the variable cost, so AVC = (7.5Q + Q²)/Q = 7.5 + Q.