Asked by
Queennie Abatayo
on Oct 08, 2024
Verified
Average fixed cost:
A) equals marginal cost when average total cost is at its minimum.
B) may be found for any output by adding average variable cost and average total cost.
C) graphs as a U-shaped curve.
D) declines continually as output increases.
Average Fixed Cost
The total fixed costs of production divided by the quantity of output produced.
Marginal Cost
The change in total production cost that arises when the quantity produced is incremented by one unit.
Average Total Cost
The total cost of production divided by the number of units produced, which includes both fixed and variable costs.
- Learn about the connection between a variety of cost segments—fixed, variable, total, marginal, and average—and their implications for output levels in the short-term horizon.
- Distinguish between the short run and the long run in the context of production costs.
Verified Answer
TT
Learning Objectives
- Learn about the connection between a variety of cost segments—fixed, variable, total, marginal, and average—and their implications for output levels in the short-term horizon.
- Distinguish between the short run and the long run in the context of production costs.