Question
A firm has the following relationship between output (Q) and total cost (TC): Q TC 0 $ 100 1 120 2 160 3 220 4
A firm has the following relationship between output (Q) and total cost (TC):
Q TC
0 $ 100
1 120
2 160
3 220
4 300
5 400
6 520
7 660
8 820
9 1000
10 1200
a.What is average total cost at Q = 2?
b.What is average variable cost at Q = 4?
c.What is marginal cost at Q = 9?
d.Is the firm operating under increasing or diminishing returns at Q = 9? Why?
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
