If a firm's Short- Run Total Cost function is given by STC = 4 + q², then: A)AVC = q and MC = q. B)FC = 4 and AVC = q. C)ATC = 4 + q and MC = 2q. D)AFC = 4/q and MC = 4 + q.

Question

Quizplus · Accepted Answer

- FC (Fixed Cost) is the coefficient of the constant term, which is 4. - AVC (Average Variable Cost) is the linear coefficient of q, which is 1. - Therefore, option B is the correct answer. - MC (Marginal Cost) is the derivative of the STC function with respect to q, which is MC = 1² = q.

If a Firm's Short- Run Total Cost Function Is Given