Which expression represents the firm’s average variable cost?
]]>AVC = 3Q^{3} – 18Q^{2} + 30Q
]]>3Q^{3} – 18Q^{2} + 30Q + 50, the firm must have $50 of fixed costs. The remainder, which change as Q changes, are variable costs. So, *3Q*^{3} – 18Q^{2} + 30Q represents the firm’s total variable costs. Average variable cost is equal to *TVC/Q*, so the firm’s *AVC = 3Q*^{2} – 18Q + 30. For further review, see section “Average and Marginal Costs”.
]]>AVC = 3Q^{2} – 18Q + 30 + 50/Q
]]>3Q3 – 18Q^{2} + 30Q + 50, includes $50 of fixed costs. Dividing the total cost function by *Q* yields average **total** cost: *3Q*^{2} – 18Q + 30 + 50/Q. So, this response includes both average variable *(3Q*^{2} – 18Q + 30) and average fixed costs *(50/Q)*. For further review, see section “Average and Marginal Costs”.
]]>AVC = 3Q^{2} – 18Q + 30
]]>3Q^{3} – 18Q^{2} + 30Q + 50, includes $50 of fixed costs. Subtracting out the $50 of fixed costs, the firms total variable costs become *TVC = 3Q*^{3} – 18Q^{2} + 30Q . Average variable costs equal *TVC/Q*, so *AVC* must equal *3Q*^{2} – 18Q + 30. For further review, see section “Average and Marginal Costs”.
]]>AVC = 3Q^{4} – 18Q^{3} + 30Q^{2}
]]>Q, rather than multiplying by *Q*, as was done here. Therefore, the firm’s *AVC = 3Q*^{2} – 18Q + 30. For further review, see section “Average and Marginal Costs”.
]]>