Suppose that,in the long run,a dairy's variable costs are VC = 2Q² (where Q is the number of gallons of milk produced each day),its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day.In the long run,there is free entry into the market.What is the dairy's total cost function? A) TC = 2Q² + 4Q B) TC = 4Q + 50 C) TC = 2Q² + 50 D) TC = 2Q² + 4Q + 50

Question

Quizplus · Accepted Answer

The total cost function in the long run includes variable costs and avoidable fixed costs. The variable cost is given as VC = 2Q², and the avoidable fixed cost is $50. Therefore, the total cost function is TC = 2Q² + 50.

Suppose That,in the Long Run,a Dairy's Variable Costs Are VC