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Use the Following Information to Answer Questions SMC=120.005Q+0.0000008Q2S M C = 12 - 0.005 Q + 0.0000008 Q ^ { 2 }

Question 5

Multiple Choice

Use the following information to answer Questions.
Sport Tee Corporation manufactures T-shirts bearing the logos of professional baseball and football teams. The wholesale market for sport T-shirts is perfectly competitive.The manager forecasts the wholesale price of T-shirts next year to be $7.00. The firm's estimated marginal cost is SMC=120.005Q+0.0000008Q2S M C = 12 - 0.005 Q + 0.0000008 Q ^ { 2 } where Q is the number of T-shirts produced and sold each month. Sport Tee Corporation will have a fixed cost of $2,000 per month.
-Average variable cost at Sport Tee is


A) 12 - 0.01Q + 0.0000024Q2
B) 12 - 0.0025Q + 0.000000266Q2
C) 12 - 0.0001Q + 0.000001Q2
D) 12Q -0.0025Q2 + 0.000000266Q3
E) none of the above

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