For the Short-Run Cost Function AVC = a + BQ $U$

question 10

Multiple Choice

For the short-run cost function AVC = a + bQ + cQ²,

• A)the AVC curve is \(U\) -shaped when a < 0,b > 0,and c < 0.
• B)the AVC curve is \(U\) -shaped when a > 0,b < 0,and c > 0.
• C)the corresponding SMC function is \(S M C = a Q + 2 b Q ^ { 2 } + 3 c Q ^ { 3 }\) .
• D)both a and c
• E)all of the above

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