For a cost function C = 100 + 10Q + Q2, the average variable cost of producing 20 units of output...
Question:
For a cost function {eq}C = 100 + 10Q + Q^2 {/eq}, the average variable cost of producing 20 units of output is:
a. 10.
b. 20.
c. 30.
d. none of the above.
The Cost Function:
In economics, the cost function shows the minimum cost that can be incurred in the production of a given quantity of output. In the short-run, the cost function includes the variable component as well as the fixed component. In the long-run, all inputs are variables, and the firm's long-run cost function is variable.
Answer and Explanation: 1
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The answer is: c. 30.
The total cost is calculated as:
- {eq}\begin{align} TC = VC + FC \end{align} {/eq}
where:
- VC is the variable cost and,
- F...
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Cost Function in Calculus: Formula & Examples
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Chapter 20 / Lesson 13
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Learn about the cost function formula. Discover how to find cost function. Explore average cost function and marginal cost function. See examples of finding the cost.
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