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Consumer & Producer Surplus · Question 8 of 70

Question 8

MediumOriginal question

The marginal cost is MC=3x2+4xMC = 3x^{2} + 4x rupees and the fixed cost is ₹100. What is the average cost function?

Options for question 8

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. C(x)=x3+2x2+100C(x) = x^{3} + 2x^{2} + 100.

  2. Average cost =C(x)x=x2+2x+100x= \frac{C(x)}{x} = x^{2} + 2x + \frac{100}{x}.

Worth noting

x2+2x+100x^{2} + 2x + 100 divides only the variable part by xx; the fixed cost is shared too.

Concept
Average cost from marginal cost
Typical time
90 s
Your time
—
The rule this testsTotal cost from marginal cost
Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.

Practise this chapter →

Ten questions from Consumer & Producer Surplus, at your own pace.