Asked by
1094 Vikrant singh
on Dec 08, 2024Verified
Marginal cost is ________ average variable cost when ________.
A) equal to; average total cost is minimized
B) less than; total cost is maximized
C) greater than; average fixed cost is minimized
D) equal to; average variable cost is minimized.
Average Total Cost
The total cost of production divided by the quantity of output produced, representing the per-unit cost of production.
Total Cost
The aggregation of all costs, both fixed and variable, incurred by a business in producing a specific quantity of goods or services.
Average Fixed Cost
The fixed costs of production divided by the quantity of output produced; it decreases as production increases.
- Calculate and interpret marginal cost and its relationship with average variable cost and average total cost.
Verified Answer
JR
Learning Objectives
- Calculate and interpret marginal cost and its relationship with average variable cost and average total cost.