For a cost function C = 100 + 10Q + Q2, the average variable cost of producing 20 units of output is

Question

A. 10
B. 20
C. 30
D. None of the statements associated with this question are correct

Answer 1

Plug 20 into your formula for total costs, then calculate average variable cost. Remember, the 100 in the total cost represents fixed costs.

Answer 2

30

Answer 3

important for class discussion