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

question 107

Multiple Choice

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

• A) 100
• B) 20
• C) 10
• D) 0

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Definitions:

Uncollectible Account

A receivable that is considered uncollectible from a debtor, usually leading to it being written off as a bad debt expense.

Accounts Receivable

Amounts due from customers to a business for products or services already received but not paid for.

Treasury Stock

Shares that were once in circulation and have been bought back by the issuing company, reducing the amount of outstanding stock.

Significant Noncash Transactions

Financial activities that do not involve cash flows but significantly affect the financial position of a company.