Suppose That Total Cost Is Given by TC = 200

question 15

Multiple Choice

Suppose that total cost is given by TC = 200 + 5Q - 0.4Q² + 0.001Q³

• A) Fixed cost (FC)is $200
• B) Variable cost (VC)is 5Q - 0.4Q² + 0.001Q³
• C) Average variable cost (AVC)is 5 - 0.4Q + 0.001Q²
• D) Marginal cost (MC)is 5 - 0.8Q +.003Q²
• E) All of the above are correct

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