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A Firm's Average Cost Function Takes the Form AC=4Q+a+6QA C = 4 Q + a + \frac { 6 } { Q }

Question 3

Multiple Choice

A firm's average cost function takes the form AC=4Q+a+6QA C = 4 Q + a + \frac { 6 } { Q } and it is known that MC = 35 when Q = 3. Find the value of AC when Q = 6.


A) 11
B) 25
C) 59
D) 36
E) 216

Correct Answer:

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