For a Cost Function C = 100 + 10Q

question 94

Multiple Choice

For a cost function C = 100 + 10Q + Q²,the average variable cost of producing 20 units of output is:

• A) 10.
• B) 20.
• C) 30.
• D) None of the answers are correct.

Identify the conditions under which a firm should produce a positive output.

Distinguish between different types of subsidies and their effects on firm output.

Understand the supply function and its derivation from production and cost conditions.

Recognize the significance of input prices on firm's production decisions and supply function.