If Total Cost Is Given by TC = a

question 47

Multiple Choice

If total cost is given by TC = a + bQ - cQ² + dQ³,then average variable cost is minimized at ________units of output.

• A) Q^* = a/2d
• B) Q^* = b/2d
• C) Q^* = c/3d
• D) Q^* = c/2d
• E) Q^* = d/2c

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Definitions:

Mitigating Uncertainty

The strategies and actions taken to reduce the unknown factors or volatility in operations, supply chain, and market environments.

Excess Capacity

The condition in which a company can produce more goods than the market demands.

Cold Cuts

Thinly sliced varieties of cooked or cured meats that are often served cold.

Efficient Supply Chains

Supply chains that are optimized to minimize costs and waste while maximizing productivity and customer value.