Suppose That,in the Long Run,a Dairy's Variable Costs Are VC

question 26

Multiple Choice

Suppose that,in the long run,a dairy's variable costs are VC = 2Q² (where Q is the number of gallons of milk produced each day) ,its marginal cost is MC = 4Q and there is an avoidable fixed cost of $50 per day.In the long run,there is free entry into the market.What is the dairy's total cost function?

• A) TC = 2Q² + 4Q
• B) TC = 4Q + 50
• C) TC = 2Q² + 50
• D) TC = 2Q² + 4Q + 50

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Definitions:

Internal Controls

Procedures and mechanisms put in place by a company to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.

Benefits

Forms of non-wage compensation provided to employees in addition to their normal wages or salaries, like health insurance, pensions, and holidays.

Voucher

A document authorizing a payment, or indicating an intention to make a payment, for goods or services received.

Cash Payments

Transactions that involve the immediate transfer of cash to settle debts or purchase goods or services.