Question

The average variable cost function is estimated to be: avc = 725 - 0.01q + 0.000001q². What is the average variable cost when q = 100?

Answer 1

To find the average variable cost when q = 100, substitute q = 100 into the given AVC function and solve the equation.

Step-by-step explanation:

The average variable cost (AVC) can be calculated by dividing the variable cost by the quantity of output. In this case, the AVC function is given as: AVC = 725 - 0.01q + 0.000001q². To find the average variable cost when q = 100, we substitute q = 100 into the AVC function: AVC = 725 - 0.01(100) + 0.000001(100)². Solving this equation gives us the average variable cost when q = 100.