TC=TFC+TVC
AFC=TFC/Q
suppose the short-run cost function can be written as TC=250+10Q.average fixed cost equals
i.e AFC=
is it
a)250
b)10
c)250/Q+10
d)250/Q
2006-06-16 23:48:53 · 2 answers · asked by DV 1 in Business & Finance ➔ Advertising & Marketing
TFC= 250 BECAUSE AS U SAID THAT TC=250+10Q, IT MEANS ACCORDING TO Y=A+BX EQUATION METHOD, A WHICH IS Y-INTERCEPT WHERE X=0 OR OUTPUT IS ZERO AS WE KNOW IN ECONOMICS THAT AT ZERO OUTPUT ONLY COST IN SHORTRUN IS FIXED COST, i.e, TFC and we also know that AFC=TFC/Q SO AFC=250/Q
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2006-06-17 08:44:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
250 = TFC
AFC = 250/Q
2006-06-16 23:52:53 · answer #2 · answered by Fat Guy 5 · 0⤊ 0⤋