AEASP Micro - Foundations Quiz 1

1. Write the expressions for total fixed cost, average variable cost, and marginal cost
using the following functions
√
(a) T C(Q) = 10 Q
(b) T C(Q) = 30 + 4Q + 2Q2

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AEASP Micro - Foundations Quiz 1

2. For a firm with cost function, T C(Q) = 30 + 4Q + 2Q2 , and market price p = $20,
what is the profit maximizing output?

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AEASP Micro - Foundations Quiz 1

3. For a firm with cost function, T C(Q) = 30 + 4Q + 2Q2 , what is the lowest market
price where the firm will choose to produce in the long-run and in the short-run?