Gce Model Questions Vol1 2017 Economics Question 6
Practice objective / multiple choice question 6 from the 2017 Gce Model Questions Vol1 Economics examination.
A firm's total cost function is \(TC = F + aQ + bQ^{2}\), where \(F\) is fixed cost and \(a, b > 0\). At an output of \(Q = 100\) units the average total cost equals the marginal cost, both being £20. When output is increased to \(Q = 200\) units, the marginal cost exceeds the average total cost by £5. Determine the fixed cost \(F\).
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About This Question
This is Gce Model Questions Vol1 2017 Economics Question 6. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Economics examination.
Difficulty level: Hard .
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