If you look at the scores on most IQ tests, they have a mean of 100 and a standard deviation of 15. For class discussion: (a) Why do you think….
Use the function below (whose parameters qualify it as a STC function) to answer the questions.
Use the function below (whose parameters qualify it as a STC function) to answer the questions. See the Total fixed cost is $ Obtain the AFC function from (a) and write it here Obtain the AVC function contained in the STC function and write the AVC function here d. Write here the MC function e. Find the value which AFC approaches as Q gets very large Also write a sentence or two explaining what this implies for fixed costs per unit (AFC) as production quantities get ever larger f. Find the value of Q at which AVC is a minimum. g. Is productiv greatest or least? e efficiency at the value in (0) h. Demonstrate that the value of SMC equals the value of AVC at the value of Q where AVC is a minimum. Hint: The level of Q you found in () is where AVC is a minimum. Q into AVC (see c) and also into MC (see d) the two outcomes should be the same if SMC crosses AVC at this level of Q. If you plug this level of i. Find the value of Q where increasing returns ceases and diminishing returns begins. Hint: Diminishing returns begins at the level of Q where MC is a minimum.