Question

A firm has a fixed production cost of $20,000 and a constant marginal cost of production of $500 per unit produced. What is the firm's total cost function? A. TC = 20,000 + (500q). B. TC = 500q. C. TC = frac{20,000 + (500q)}{q}. D. TC = 20,000. The firm's average total cost (ATC) of production is A. ATC = 20,000 + (500q). B. ATC = 500q. C. ATC = 500. D. ATC = frac{20,000}{q}. E. ATC = frac{20,000 + (500q)}{q} If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain. A. very large because the average total cost of production falls with output. B. very small because the average total cost of production rises with output. C. very small because the marginal cost of production rises with output. D. very large because the marginal cost of production falls with output. E. very small because the total cost of production rises with output.

          A firm has a fixed production cost of $20,000 and a constant marginal cost of production of $500 per unit produced.
What is the firm's total cost function?
A. TC = 20,000 + (500q).
B. TC = 500q.
C. TC = frac{20,000 + (500q)}{q}.
D. TC = 20,000.
The firm's average total cost (ATC) of production is
A. ATC = 20,000 + (500q).
B. ATC = 500q.
C. ATC = 500.
D. ATC = frac{20,000}{q}.
E. ATC = frac{20,000 + (500q)}{q}
If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.
A. very large because the average total cost of production falls with output.
B. very small because the average total cost of production rises with output.
C. very small because the marginal cost of production rises with output.
D. very large because the marginal cost of production falls with output.
E. very small because the total cost of production rises with output.

$A firm has a fixed production cost of 20,000 and a constant marginal cost of production of500 per unit produced. What is the firm's total cost function? A. TC = 20,000 + (500q). B. TC = 500q. C. TC = frac20,000 + (500q)q. D. TC = 20,000. The firm's average total cost (ATC) of production is A. ATC = 20,000 + (500q). B. ATC = 500q. C. ATC = 500. D. ATC = frac20,000q. E. ATC = frac20,000 + (500q)q If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain. A. very large because the average total cost of production falls with output. B. very small because the average total cost of production rises with output. C. very small because the marginal cost of production rises with output. D. very large because the marginal cost of production falls with output. E. very small because the total cost of production rises with output.$

Added by Albert B.

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