The minimum average cost of producing alternate levels of output, allowing for optimal selection of all variables of production is defined by the:

  • Long run average total cost curve
For the cost function C(Q) = 200 + 3Q + 8Q2 + 4Q3, what is the average fixed cost of producing six units of output?
  • 33.33

For the cost function C(Q) = 1000 + 14Q + 9Q2 + 3Q3, what is the marginal cost of producing the fourth unit of output?

  • $230
What is implied when the total cost of producing Q1 and Q2 together is less than the total cost of producing Q1 and Q2 separately?
  • Economies of scope
Which curve(s) does the marginal cost curve intersect at the (their) minimum point?
  • Average total cost curve and average variable cost curve