Question
A firm’s marginal cost is given by the function MC = 45. Which of the following would be
the total cost C(q) if k =80?
(a) C = 45q + 80
(b) C = - 80 + 45q
(c) C = 45q
(d) C = 80
Show working out
the total cost C(q) if k =80?
(a) C = 45q + 80
(b) C = - 80 + 45q
(c) C = 45q
(d) C = 80
Show working out
Answers
GPT 3.5
Since the marginal cost is given by MC = 45, we know that the total cost function C(q) will be the integral of the marginal cost function.
C(q) = ∫ MC dq
C(q) = ∫ 45 dq
C(q) = 45q + k
Given that k = 80, the total cost function becomes:
C(q) = 45q + 80
Therefore, the answer is (a) C = 45q + 80.
C(q) = ∫ MC dq
C(q) = ∫ 45 dq
C(q) = 45q + k
Given that k = 80, the total cost function becomes:
C(q) = 45q + 80
Therefore, the answer is (a) C = 45q + 80.