Asked by Dawaii Kidakan on Sep 23, 2024
Average cost of production is
A) Total variable cost divided by total units produced
B) Total fixed cost divided by total units produced
C) Total cost divided by total units produced
D) Equal to marginal cost
Average Cost
The cost per unit of output, typically calculated by dividing total costs by the total quantity produced; synonymous with average total cost.
Production
The process of creating, growing, manufacturing, or improving goods and services.
Total Variable Cost
The sum of expenses that vary directly with the level of production or output, such as materials and labor.
- Draw a distinction between average cost and marginal cost, exploring their repercussions on the formulation of production and pricing tactics.
Learning Objectives
- Draw a distinction between average cost and marginal cost, exploring their repercussions on the formulation of production and pricing tactics.