Asked by Rachel Hwang on Jun 22, 2024
Verified
If we know average total cost and the amount of output, then we can always calculate total cost by
A) adding average total cost and the amount of output.
B) subtracting the amount of output from average total cost.
C) multiplying average total cost by the amount of output.
D) dividing average total cost by the amount of output.
Average Total Cost
The total cost of production divided by the quantity of output produced, representing the cost per unit.
Total Cost
The sum of all expenses incurred in the production of a good or service, including both fixed and variable costs.
- Understand the concept of total cost and how to calculate it using average total cost and output.
Verified Answer
KJ
kelly JohnsonJun 28, 2024
Final Answer :
C
Explanation :
Total cost can be calculated by multiplying the average total cost by the amount of output.
Learning Objectives
- Understand the concept of total cost and how to calculate it using average total cost and output.