An Average Variable Cost Function Is Estimated As $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$

question 45

Multiple Choice

An average variable cost function is estimated as $A V C = 96 - 2 Q + 0.05 Q ^ { 2 }$ Which of the following cost functions is associated with this estimate?

• A)SMC = 96 - 4Q + 0.1Q²
• B)TVC = 96Q - 2Q² + 0.05Q³
• C)TVC = 96Q + 4Q² + 0.15Q³
• D)SMC = 96 - 4Q + 0.15Q²
• E)both b and d

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Definitions:

Supply

The total amount of a product or service that is available for purchase at any given time.

Demand

The consumer's desire and willingness to pay for a product or service, influencing its market price and quantity.

Transportation Model

A type of optimization model used to determine the most efficient distribution of goods or services from several supply locations to several demand locations.

Cells

In operations management, refers to a manufacturing or service area structured to work as a unit for the production of goods or delivery of services.