If the average-cost function is AC = – 4Q + 214, then the given function is more appropriate as a
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1 mark, −0.33MicroeconomicsCosts of productionShort-run cost curves and their relationshipsModerateabout 1 min
UoH 2018 Question 21: Costs of production
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If the average-cost function is AC = Q² – 4Q + 214, then the given function is more appropriate as a (A) long-run function (B) short-run function (C) both short-run and long run functions (D) can not determine
Also written as: If the average-cost function is AC = Q^2 – 4Q + 214, then the given function is more appropriate as a
Costs of production has come up 83 times in 7 exams since 2006.
What this question tests
This question is on Short-run cost curves and their relationships, part of Costs of production in Microeconomics.
Fixed, variable, average and marginal cost, and how marginal cost relates to average cost.
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Question from the UoH 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.