Suppose that a firm's long-run total cost curve can be expressed as $T C = 10 Q Q ^ { 2 } + 20 Q$ . This firm's long-run average total cost curve can be expressed as
A) $A C = 20 Q + 20$ .
B) $A C = 10 Q + 20$ .
C) $A C = 10 + 20 Q$ .
D) $A C = 10 Q ^ { 2 }$ .

Question

Quizplus · Accepted Answer

The average cost (AC) is calculated by dividing the total cost (TC) by the quantity (Q). Given $TC = 10Q^2 + 20Q$, the average cost is $AC = \frac{10Q^2 + 20Q}{Q} = 10Q + 20$.

Suppose That a Firm's Long-Run Total Cost Curve Can Be TC=10QQ2+20QT C = 10 Q Q ^ { 2 } + 20 QTC=10QQ2+20Q

Suppose That a Firm's Long-Run Total Cost Curve Can Be $T C = 10 Q Q ^ { 2 } + 20 Q$