The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the marginal cost?
A. 200
B. 5Q
C. 5
D. 5 + (200/Q)
E. none of the above
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The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the average total cost?
A. 500
B. 5Q
C. 5
D. 5 + (200/Q)
E. none of the above
The total cost (TC) of producing computer software diskettes (Q) is given as: TC = 200 + 5Q. What is the average fixed cost?
A. 500
B. 5Q
C. 5
D. 5 + (200/Q)
E. none of the above
Which always increase(s) as output increases?
A. Marginal Cost only
B. Fixed Cost only
C. Total Cost only
D. Variable Cost only
E. Total Cost and Variable Cost
Consider the following statements when answering this question; I. A firm's marginal cost curve does not depend on the level of fixed costs. II. As output increases the difference between a firm's average total cost and average variable cost curves cannot rise.
A. I is true, and II is false.
B. I is false, and II is true.
C. I and II are both true.
D. I and II are both false.