The Total Cost (TC) of Producing Computer Software Diskettes (Q)

question 19

Multiple Choice

The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the average total cost?

• A) 500
• B) 5Q
• C) 5
• D) 5 + (200/Q)
• E) none of the above

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, indicating the sensitivity of demand to price changes.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Consumer Purchases

Transactions in which individuals buy goods and services for personal use, reflecting consumer spending habits and economic health.

Elasticity

A measure in economics that shows how the quantity demanded or supplied of a good changes in response to a change in price.