Suppose a Firm's Total Cost and Marginal Cost Functions Are

question 16

Multiple Choice

Suppose a firm's total cost and marginal cost functions are given by TC = 18 + Q + 2Q² and MC = 1 + 4Q, respectively. What is the output level that minimizes average total cost?

• A) 5
• B) 3
• C) 4.45
• D) 6

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Definitions:

Organization's Profitability

A measure of the efficiency and financial success of an organization, determined by the extent to which its income exceeds its costs and expenses.

Period of Time

A specific duration marked by a beginning and an end, often used to describe or measure events or changes.