Suppose a Firm Has a Variable Cost Function VC =

question 48

Multiple Choice

Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000.What is the firm's average cost function?

• A) AC = 50,000 + 20Q
• B) AC = (50,000/Q) + 20
• C) AC = 50,000 + 40Q
• D) AC = 20

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Definitions:

Complex Tasks

Tasks that are multifaceted, challenging, and require a high level of skill and cognitive effort to complete.

High Formalization

refers to an organization's emphasis on structure, rules, and procedures to standardize behavior and processes.

Structural Characteristic

A fundamental aspect or feature that defines the organization, composition, or construction of something.

Decisions

Choices made from among alternative courses of action that may affect an organization or individual's course.