Asked by
Atchima .Prom
on Oct 12, 2024Verified
If ATC is $100,MC is $90 and AVC is $80,then
A) ATC is rising and AVC is rising.
B) ATC is falling and AVC is falling.
C) ATC is rising and AVC is falling.
D) ATC is falling and AVC is rising.
ATC
The average total cost is defined as the total production cost divided by the quantity of produced output.
AVC
Average Variable Cost, which is the cost of labor, materials, or overhead that changes according to the level of production output.
MC
Marginal cost, the increase in total cost that arises from an extra unit of production, important for decision-making in production and pricing.
- Understand the interconnection among average total cost (ATC), marginal cost (MC), and average variable cost (AVC).
Verified Answer
SG
Learning Objectives
- Understand the interconnection among average total cost (ATC), marginal cost (MC), and average variable cost (AVC).