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For a Firm, Let Total Cost Be TC(Q)=10Q2T C ( Q ) = 10 Q ^ { 2 }

Question 91

Multiple Choice

For a firm, let total cost be TC(Q) =10Q2T C ( Q ) = 10 Q ^ { 2 } and marginal cost be MC(Q) =20QM C ( Q ) = 20 Q . Which of the following is an expression for the output elasticity of total cost?


A) ϵTC,Q=10Q\epsilon _ { T C , Q } = 10 Q .
B) ϵIC,Q=2Q\epsilon _ { I C , Q } = 2 Q .
C) ϵTC,Q=2\epsilon _ { T C , Q } = 2 .
D) ϵTC,Q=20Q\epsilon _ { T C , Q } = 20 Q .

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