An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost functions is associated with this estimate? a. MC = -2Q + 0.1Q2 b. TVC = 96Q- 2Q2 + 0.1Q3 c. TVC = 96Q - 4Q2 +0.15Q3 d. MC = 96 - 4Q+0.15Q2

An average variable cost function is estimated as AVC = 96-2Q + 0.05Q2. Which of the following cost functions is associated with this estimate? a. MC = -2Q + 0.1Q2 b. TVC = 96Q- 2Q2 + 0.1Q3 c. TVC = 96Q - 4Q2 +0.15Q3 d. MC = 96 - 4Q+0.15Q2

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 4E

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An average variable cost function is estimated as
AVC = 96-2Q + 0.05Q2. Which of the following
cost functions is associated with this estimate?
a. MC = -2Q + 0.1Q2
b. TVC = 96Q-2Q2 + 0.1Q3
c. TVC = 96Q - 4Q2 +0.15Q3
d. MC 96-4Q+0.15Q2
=

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