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Commerce · Q381

Economics

Graduate and Post Graduate · Commerce · question 381

Q381

Suppose the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals

A.
250/Q
Answer
B.
250
C.
10
D.
250/Q + 10

Answer: Option A

Solution

Answer: Option A
Solution:
If the short run cost function can be written as TC=250 + 10Q. Average fixed cost equals 250/Q.