A firm has determined that its variable costs are given by the following relationship:
VC = .05Q3 - 5Q2 + 500Q
where Q is the quantity of output produced. Determine the average variable cost function.
a. AVC = .15Q2 - 10Q + 500
b. AVC = .15Q4 - 10Q3 + 500Q2
c. AVC = .05Q2 - 5Q + 500
d. AVC = .05Q4 - 5Q3 + 500Q