If a firm's cost function is C(Q) = (2 + Q)2 , then the average fixed cost equals what? a) 2 b) 4 c) 2/Q d) 4/Q

Question

Question

If a firm's cost function is C(Q) = (2 + Q)² , then the average fixed cost equals what?

a) 2

b) 4

c) 2/Q

d) 4/Q

Answer 1

Answer #1

Snce Cca) -(2ta)2 CO)2 20a Here Total Cast Cca) 2a+4 1Now ixcastrd fVeni able (ost Total CastCTe 20 t0 / FC Ve JAuage rCas di

Answer 2

Similar Homework Help Questions

Suppose a firm's cost function is C (q) = 2q2 + 8. i) The variable cost...

Suppose a firm's cost function is C (q) = 2q2 + 8. i) The variable cost is? a) q2 b) 2q2 c) 2 d) 2q ii) The average fixed cost is? a) 2q2 b) 8 c) 2q d) 8/q iii) The average total cost is? a)2q2 b) 2q c) 2q + 8/q d) 8/q iv) The average variable cost is? a) 2q2 b) 2q c) 8 d) 2q + 8/q vi) The marginal cost is? a) 2q2 b) q2 c) q...
If a firm's marginal cost function is MC(Q) = (b/2) + aQ and the demand curve...

If a firm's marginal cost function is MC(Q) = (b/2) + aQ and the demand curve is P = b - aQ (where a and b are both positive numbers), then the firm's profit-maximizing quantity equals what? a) 0 b) b/(2a) c) b/(3a) d) b/(6a)
Suppose a firm's cost function is C (q) = 2q2 + 8. The output q that...

Suppose a firm's cost function is C (q) = 2q2 + 8. The output q that minimizes average total cost is: (Hint: At the minimum of the ATC, ATC is equal to MC) a)4 b) 2 c) 0 d) 8

TC = 500 + 10Q + 0.05 Q*Q What is the firm's fixed cost What is...

TC = 500 + 10Q + 0.05 Q*Q What is the firm's fixed cost What is the firm's average variable cost?
need help with 5 and 6 Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm...

need help with 5 and 6 Suppose a perfectly competitive firm's cost function is C(q)-4q*+16. Marginal cost for the firm is given by MC=8q. 1) Find equations for variable cost, fixed cost, average total cost, average variable cost and average fixed cost for this firm. Illustrate on a graph the firm's average variable cost curve, average total cost curve, and marginal cost curve. 2) Find the outputs that minimize average total cost, average variable cost and average fixed cost. 3)...
3) Suppose that a firm's average variable cost function is AVC(Q)=(Q-10)2+25 for all Q20. a) Find...

3) Suppose that a firm's average variable cost function is AVC(Q)=(Q-10)2+25 for all Q20. a) Find this firm's short run marginal cost function for all Q20. b) Find this firm's short run supply curve. 10 pts

A. Q=4 B. Q=8 C. Q=10 D. Q=12 The graph below shows the average total cost...

A. Q=4 B. Q=8 C. Q=10 D. Q=12 The graph below shows the average total cost and marginal cost curves of a perfectly competitive firm. If the market price is $7, what is the output level that maximizes the firm's profit? 12 11 10 MC ATC 9 8 Price $/Q 4 3 2 0 2 3 4 5 9 10 11 12 دفا 14 15 16 6 7 8 Quantity
7. Suppose the same firm's cost function is C=40* +16 a. Find variable cost, fixed cost,...

7. Suppose the same firm's cost function is C=40* +16 a. Find variable cost, fixed cost, average cost, average variable cost, and average fixed cost. b. Show the average cost, marginal cost, and average variable cost curves on a graph. c. Find the output that minimizes average cost. d. At what range of prices will the firm produce a positive output? e. At what range of prices will the firm earn a negative profit? f. At what range of prices...
What is the level of profit? Profit equals $_______________ Suppose that a firm's production function is...

What is the level of profit? Profit equals $_______________ Suppose that a firm's production function is q=4x0.5 in the short run, where there are fixed costs of $2,000, and x is the variable input whose cost is $800 per unit. What is the total cost of producing a level of output q? In other words, identify the total cost function C(q). The total cost of producing a level of output q is O A. C(q) = 2,000 + O B....

Question 4 Consider the Sunshine Company, a perfectly competitive firm with the following cost function TC...

Question 4 Consider the Sunshine Company, a perfectly competitive firm with the following cost function TC 12006Q + 202 where Q is the firm's output per day. a) Find the firm's marginal cost function. [2 marks] C b) If the price of Sunshine's product equals $66, how many units per day should the firm produce? [4 marks] c) Find the firm's average variable cost function. [3 marks] d) Is average variable cost at the quantity you calculated in part b)...