Suppose a firm's total cost curve is TC = Q² + Q + 100. The firm's average variable cost is AVC = ____. A) Q² + Q + 100 B) 2Q + 1 C) Q + 1 + (100/Q) D) Q + 1

Question

Quizplus · Accepted Answer

Average Variable Cost (AVC) is calculated by subtracting fixed costs from the total cost (TC) and then dividing by the quantity (Q). In the given total cost function, TC = Q² + Q + 100, the fixed cost is 100. Subtracting this from TC gives Q² + Q, which, when divided by Q, simplifies to Q + 1, since the Q² term does not represent a standard mathematical expression and seems to be a formatting error or placeholder. Therefore, the correct AVC is Q + 1.

Suppose a Firm's Total Cost Curve Is TC = Q2

Suppose a Firm's Total Cost Curve Is TC = Q²