A Short-Run Marginal Cost Function Is Estimated As $S M C = 96 - 4 Q + 0.15 Q ^ { 2 }$

question 52

Multiple Choice

A short-run marginal cost function is estimated as $S M C = 96 - 4 Q + 0.15 Q ^ { 2 }$ .Which of the following cost functions is associated with this estimated SMC equation?

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

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Definitions:

Price of Labor

The wage rate or compensation paid to employees for their work, often determined by the dynamics of supply and demand in the labor market.

Isocost Line

A graph showing all possible combinations of inputs that can be purchased for the same cost.

Combinations of Capital

Various ways in which a firm can organize its financial resources and assets to support its production process and operations.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.