Suppose Kate's Great Crete (KGC) has annual variable costs of VC = 30Q + 0.0025Q2 and marginal costs of MC = 30 + 0.005Q, where Q is the number of cubic yards of concrete it produces per year. In addition, it has an avoidable fixed cost of $50,000 per year. KGC's demand function is Qd = 20,000 - 400P. What is KGC's average cost function?
A. AC = (50,000/Q) + 50 + 0.005Q
B. AC = (20,000/Q) + 30 + 0.005Q
C. AC = (50,000/Q) + 30 + 0.0025Q
D. AC = 50,000 + 30Q + 0.0025Q2
C. AC = (50,000/Q) + 30 + 0.0025Q
You might also like to view...
One of the changes in the welfare system of the United States that occurred in 1996 was a move to block grants for states. What advantage(s) might a block grant system allow?
What will be an ideal response?
If average product is decreasing, then marginal product
a. Must be increasing b. Must be greater than average product c. Must be less than average product d. None of the above
The system that measures the economy's overall performance is formally known as:
a) National income accounting b) Business cycle measurement c) GDP assessment d) Final output and income statistics
If we wanted to analyze the effects of a $2 unit tax graphically, we would shift the
A) supply curve upward by $2. B) supply curve downward by $2. C) demand curve upward by $2. D) demand curve downward by $2.