Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of...

Question

Question

Suppose a firm has a variable cost function VC = 20Q with avoidable fixed cost of $50,000. What is the firm's average cost function?

A. AC= 50,000 +20Q

B. AC = 50,000/Q +20

C. AC = 50,000 + 40Q

D. AC = 20

PLEASE SHOW YOUR WORK. (EVERY STEP)

business economics

Answer 1

Answer #1

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Answer 2

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