A Variable Cost Function of the Form: VC = 52

question 107

Multiple Choice

A variable cost function of the form: VC = 52 + 2Q + 3Q² implies a marginal cost curve that is

• A)constant.
• B)upward sloping.
• C)U-shaped.
• D)quadratic.

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Definitions:

C + I

An economic formula representing consumer spending (C) plus investment spending (I), components of a country's GDP calculation.

Disposable Income

Households' financial resources for expenditure and savings following income tax deductions.

Savings

Money set aside for future use rather than spent immediately.

Savings

The portion of income not spent on current consumption or taxes, instead set aside for future use or investment.