Quiz 5

Q:  If TC=7q3+3q+7, find FC and VC.

A:   FC = 7 to find this calculte TC when q=0.  
      VC = 7q3+3q to find this take TC-FC 


Q:  What is the difference between the long run and the short run?  

A:  In the long run everything is variable (can change), but in the short run some things are variable and some are fixed.