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:

Foreseeable Harm

A concept in law referring to the anticipation of harm that a reasonable person in similar circumstances would expect.

Contributory Negligence

A legal doctrine under which a party's own negligence contributes to their harm and may limit or bar their recovery for damages.

Comparative Negligence

A principle of tort law that compares the fault of each party involved in an accident and apportions damages accordingly.

Res Ipsa Loquitur

A legal doctrine that infers negligence from the very nature of an accident or injury, in the absence of direct evidence.