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1. Assume the total cost function of your business is given by C(q) = 100+5q+q2. Then, if the output is q = 10, the average total cost isA. 15 dollarsB. 20 dollarsC. 25 dollarsD. 30 dollars2. Which of the following types of costs is more relevant when making production decisions?A. Marginal costsB. Sunk costsC. Fixed costs3. Assume you are the manager of a business with the total cost function C(q)=50+5q2 and you sell your output in a competitive market at a price of p=250 dollars per unit. Then, to maximize your profit you should produceA. 15 unitsB. 20 unitsC. 25 unitsD. 30 units
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