Question: A computer company's cost function, which relates its average cost of production AC to its cumulative output in thousands of computers Q and its plant

A computer company's cost function, which relates its average cost of production AC to its cumulative output in thousands of computers Q and its plant size in terms of thousands of computers produced per year q(within the production range of10,000 to50,000 computers), is given by
ACequals=1010minus0.100.10Qplus+0.300.30q.
Part 2
Is there a learning-curve effect? A learning-curve effect
Part 3
A.
exists because average costs decrease as current output, q, increases.
B.
does not exist because average costs decrease as cumulative output, Q, increases.
C.
exists because average costs increase as current output, q, increases.
D.
exists because average costs decrease as cumulative output, Q, increases.
E.
does not exist because average costs increase as current output, q, increases.

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