For a cost function C 100 5Q 2Q2 the average variable cos

For a cost function C = 100 + 5Q + 2Q2, the average variable cost of producing 10 units of output is: 10. 25. 35. None of the answers are correct.

Solution

C=100+5Q+2Q²

Total fixed cost=100

Total variable cost=TVC=5Q+2Q²

Average variable cost =TVC/Q

AVC=(5Q+2Q²)/Q

AVC=5+2Q

AVC at Q=10:

AVC=5+2Q=5+2(10)=25

Hence correct answer is 25.