Janet's Poodle Grooming Salon Has a Total Cost Curve Expressed

question 129

Multiple Choice

Janet's poodle grooming salon has a total cost curve expressed by the equation TC = 100 + 3Q₂, where Q is the quantity of dogs groomed.Given this expression, Janet is operating in the:

• A)long run.
• B)short run, and her fixed costs are equal to $100.
• C)long run, and her fixed costs are equal to $100.
• D)short run, and there are no fixed costs.

---

Definitions:

Long-Run Average Cost Curve

A graphical representation showing the minimum average cost at which any output level can be produced when all inputs are variable in the long run.

Short-Run

A timeframe in economics where at least one input, such as capital or labor, is fixed, limiting the ability of businesses to adjust production immediately.

Tangent

In economics, it represents a point where two curves touch, often used in optimization problems to find equilibrium points.

Long Run

Refers to a period during which all factors of production and costs are variable, allowing full adjustment to production decisions.