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Questions › JNU › JNU SIS 2014 › Q6
4 marks, −1Microeconomics › Costs of production › Deriving cost functions and cost curvesEasyabout 2 min

JNU SIS 2014 Question 6: Costs of production

A firm faces the following long-run cost function : TC=q3−40q2+450qTC = q^3 - 40q^2 + 450qTC=q3−40q2+450q The average cost (AC) will be at its minimum, when

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A firm faces the following long-run cost function: TC = q³ - 40q² + 450q The average cost (AC) will be at its minimum, when (A) q = 10 and AC = 20 (B) q = 40 and AC = 60 (C) q = 40 and AC = 10 (D) q = 20 and AC = 50

Also written as: A firm faces the following long-run cost function: TC = q^3 - 40q^2 + 450q The average cost (AC) will be at its minimum, when

Costs of production has come up 83 times in 7 exams since 2006.

What this question tests

This question is on Deriving cost functions and cost curves, part of Costs of production in Microeconomics.

Working out cost curves from a cost function, a production function or a marginal cost schedule.

TestStop has 20 past-paper questions on this subtopic; the nearest in year are below.

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  • GATE 2023 · Q59Consider the following short-run cost function: C(q) = 10q³-80q²+300q+50 At the minimum average variable…
Practise Costs of productionMore on Deriving cost functions and cost curves

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Question from the JNU SIS 2014 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.