Suppose a Firm's Total Cost and Marginal Cost Functions Are

question 16

Multiple Choice

Suppose a firm's total cost and marginal cost functions are given by TC = 18 + Q + 2Q² and MC = 1 + 4Q, respectively. What is the output level that minimizes average total cost?

• A) 5
• B) 3
• C) 4.45
• D) 6

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Definitions:

Solve Problems

The process of finding solutions to difficult or complex issues.

Alderfer's ERG Theory

A motivational theory positing that there are three groups of core needs: existence, relatedness, and growth, which influence human behavior.

Maslow's Hierarchy

This theory suggests that individuals are motivated by a hierarchy of needs, starting from basic needs such as food and safety to higher needs like esteem and self-actualization.

Personal Development

The process of improving one’s skills, knowledge, and capacities, often through self-discipline, training, and reflection.