question
Consider the following Total Cost function. Note: This is NOT an Average Total Cost function, this is a Total Cost function:
TC = 400 + .5Q + .15Q2
Based on the function above, which of the following is the formula for Average Total Cost (ATC)?
TC = 400 + .5Q + .15Q2
Based on the function above, which of the following is the formula for Average Total Cost (ATC)?
answer
ATC = 400/Q + .5 + .15*Q
question
This is the same Total Cost function you saw in Question 1.
TC = 400 + .5Q + .15Q2
Based on the correct answer to the previous question, what is the value of Average Total Cost when you're producing 50 units of output?
TC = 400 + .5Q + .15Q2
Based on the correct answer to the previous question, what is the value of Average Total Cost when you're producing 50 units of output?
answer
ATC = 16
question
This is the same Total Cost function you saw in Question 1:
TC = 400 + .5Q + .15Q2
Based on the correct answer to Question 1, what is your Average Total Cost (ATC) when you are producing 80 units of output?
TC = 400 + .5Q + .15Q2
Based on the correct answer to Question 1, what is your Average Total Cost (ATC) when you are producing 80 units of output?
answer
ATC = 17.5
question
Based on the correct answers to the three previous questions, which of the following is correct?
answer
This firm does not exhibit economies of scale as output increases from 50 to 80
question
Consider the folloiwng Total Cost function. Note: This is not an Average Total Cost function (ATC), this is a Total Cost function:
TC = 100Q - 2Q2 + .05*Q3
Which of the following is the Average Total Cost (ATC) function associated with this Total Cost function?
TC = 100Q - 2Q2 + .05*Q3
Which of the following is the Average Total Cost (ATC) function associated with this Total Cost function?
answer
ATC = 100 - 2Q + .05Q2
question
This question uses the same TC function as the previous question:
TC = 100Q - 2Q2 + .05*Q3
Based on the correct answer to the previous question, what is the value of Average Total Cost (ATC) when you are producing 10 units of output?
TC = 100Q - 2Q2 + .05*Q3
Based on the correct answer to the previous question, what is the value of Average Total Cost (ATC) when you are producing 10 units of output?
answer
ATC = 85
question
This question uses the same Total Cost function as the previous two questions:
TC = 100Q - 2Q2 + .05*Q3
What is the value of ATC when you are producing 20 units of output?
TC = 100Q - 2Q2 + .05*Q3
What is the value of ATC when you are producing 20 units of output?
answer
ATC = 80
question
Based on the correct answers to the previous 3 questions, which of the following is correct?
answer
Your firm exhibits economies of scale as you increase output from 10 to 20
question
In the videos (and in the textbook) you saw a graph very similar to this one; which of the following is the correct explanation given as to why we move from one ATC curve to another?
answer
When you change your fixed input (for example, increase or decrease your capital) you move from one ATC curve to another
question
Consider the following Total Cost function:
TC = 50Q - 2Q2 + .1*Q3
Which of the folloiwng comes closest to the value of Marginal Cost as your firm goes from producing 15 units of output to 16 units of output?
TC = 50Q - 2Q2 + .1*Q3
Which of the folloiwng comes closest to the value of Marginal Cost as your firm goes from producing 15 units of output to 16 units of output?
answer
MC = approximately $60
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