Suppose a Firm Has a Weekly Cost Function of C(Q)=

question 25

Multiple Choice

Suppose a firm has a weekly cost function of C(Q) = 8Q + (Q²/100) and a marginal cost function of MC = 8 + (Q/50) .What is the efficient scale of production,and what is the minimum average cost?

• A) Q^e = 0; AC = $0
• B) Q^e = 0; AC = $8
• C) Q^e = 8; AC = $8
• D) Q^e = 8; AC = $64.64