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

question 38

Multiple Choice

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

• A) the AVC curve is \(\cup\) -shaped when a < 0, b > 0, and c < 0.
• B) the AVC curve is \(\cup\) -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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Definitions:

Probability Values

Quantitative measures that reflect the chance or likelihood of a particular event or outcome occurring.

Experiment

A scientific procedure undertaken to make a discovery, test a hypothesis, or demonstrate a known fact by manipulating variables under controlled conditions.

Outcomes

The possible results that may occur from a random experiment or occurrence.

Selections

The process of choosing or selecting from a group of alternatives.