Suppose That a Firm's Long-Run Total Cost Curve Can Be $T C = 10 Q Q ^ { 2 } + 20 Q$

question 37

Multiple Choice

Suppose that a firm's long-run total cost curve can be expressed as $T C = 10 Q Q ^ { 2 } + 20 Q$ . This firm's long-run average total cost curve can be expressed as

• A) \(A C = 20 Q + 20\) .
• B) \(A C = 10 Q + 20\) .
• C) \(A C = 10 + 20 Q\) .
• D) \(A C = 10 Q ^ { 2 }\) .

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Definitions:

Operating Expenses

Expenses incurred through normal business operations, such as rent, utilities, and salaries.

Renovation Cost

The total expenses incurred in refurbishing and restoring a building or facility to either improve it or bring it back to its original condition.

After-Tax Discount Rate

This is the discount rate that has been adjusted to reflect the impact of taxes on a project's cash flow.

Income Tax Rate

The percentage at which an individual or corporation is taxed; the rate may vary by income level, type of income, or other factors.