If the Long-Run Total Cost Curve for Each Firm Is

question 126

Multiple Choice

If the long-run total cost curve for each firm is given by TC = 500Q - 20Q² + Q³, where Q is the quantity of the product, in the long run, the marginal cost is:

• A) 500Q - 20Q² + Q³.
• B) 500 - 40Q + 3Q².
• C) 500 - 20Q + Q².
• D) -20Q² + Q³.

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Definitions:

Depreciation Expense

Spreading out the cost of a tangible resource over the period it is expected to be used.

Accumulated Depreciation

The total amount of depreciation expense allocated to a fixed asset since it was put into use, reflecting its wear and tear over time.

Business Computer

A computer designed for business purposes, including processing data, managing information, and supporting business operations.

Double-Declining-Balance

A method of accelerated depreciation in which an asset’s book value is decreased at double the rate of its straight-line depreciation.