Question
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be: AVC = 4.0
Suppose that the manager of a firm operating in a perfectly competitive market has estimated the average variable cost function to be:
AVC= 4.0 - 0.0024Q+ 0.000006Q2
Fixed costs are $500. The marginal cost function is:
Multiple Choice
- MC =4.0 - 0.0048Q+ 0.000018Q2
- MC =4.0 - 0.0012Q+ 0.000002Q2
- MC =4.0Q - 0.0024Q2+ 0.000012Q3
- MC =4.0 - 0.0048Q+ 0.000012Q2
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Bank Management
Authors: Timothy W Koch, Mark S Cracolice
7th Edition
1111804265, 9781111804268
