Asked by lauren delancellotti on May 31, 2024
Verified
A firm has the short-run total cost function c(y) 9y2 144.At what quantity of output is short-run average cost minimized?
A) 4
B) 16
C) 0.75
D) 3
E) None of the above.
Short-Run Total Cost
The total of all costs incurred in the production of goods or services in the short term, including both fixed and variable costs.
Short-Run Average Cost
The total cost of production (fixed and variable costs) divided by the quantity produced, over the short term where some factors of production are fixed.
Output Quantity
The total amount of goods or services produced by a company or an economy in a specific period.
- Understand the concepts of short-run and long-run cost functions in economics.
- Determine the optimal level of output to minimize costs or maximize profits.
Verified Answer
Learning Objectives
- Understand the concepts of short-run and long-run cost functions in economics.
- Determine the optimal level of output to minimize costs or maximize profits.
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