What Are the Functions for MC and AC If TC

question 7

Multiple Choice

What are the functions for MC and AC if TC = 40 + 10q + 5q²?

• A) MC = 10q; AC = 10 + 5q
• B) MC = 10 + 10q; AC = 40/q + 10 + 10q
• C) MC = 10 + 10q; AC = 40/q + 10q²
• D) MC = 20 + 10q; AC = 40/q + 10q

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Definitions:

Equilibrium Price

The charge where the amount of merchandise supplied equals the amount consumers are willing to purchase.

Inelastic Demand

A situation where the demand for a product does not significantly change with a change in price.

Elastic Supply

A situation where the supply of a good changes significantly when its price changes.

Tax Burden

The measure of the impact of taxation on an individual's or entity's income, assets, or purchasing power.