Suppose the cost function is C(Q)= 50 + Q − 10Q² + 2Q³.At 10 units of output,the average cost curve is: A) in the increasing stage. B) in the declining stage. C) at the minimum level. D) at the maximum level.

Question

Quizplus · Accepted Answer

To determine the stage of the average cost curve at 10 units of output, we need to calculate the average cost (AC) at that level of output. AC(Q=10) = C(Q=10)/Q = (50 + 10 − 10Q² + 2Q³)/10 The second and third terms in the numerator are positive (since Q and S1P13 are positive), while the first and fourth terms are constants. Thus, as Q increases, the AC curve will be increasing since the positive terms are larger than the constant term. Therefore, the answer is A: in the increasing stage.

Suppose the Cost Function Is C(Q)= 50 + Q −