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For the Short-Run Cost Function AVC = a + BQ \cup

Question 38

Multiple Choice

For the short-run cost function AVC = a + bQ + cQ2,


A) the AVC curve is \cup -shaped when a < 0, b > 0, and c < 0.
B) the AVC curve is \cup -shaped when a > 0, b < 0, and c > 0.
C) the corresponding SMC function is SMC=aQ+2bQ2+3cQ3S M C = a Q + 2 b Q ^ { 2 } + 3 c Q ^ { 3 } .
D) both a and c
E) all of the above

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