Suppose a Firm's Total Cost Curve Is TC = Q²

question 134

Multiple Choice

Suppose a firm's total cost curve is TC = Q² + Q + 100. The firm's average total cost is ATC = ____.

• A) Q² + Q + 100
• B) 2Q + 1
• C) Q + 1 + (100/Q)
• D) Q + 1

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Definitions:

Utilization

The degree to which a resource, such as equipment or labor, is being used effectively to produce goods or services.

Efficiency

A measure of how well resources (time, energy, costs) are used to achieve a goal or perform a process with minimal waste or effort.

Break-Even Point

The point at which total cost and total revenue are equal, meaning there is no net loss or gain.

Variable Cost

A cost that varies with the level of output or production, such as materials and labor costs.