Asked by Shannon Pennie on Jul 29, 2024

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Average total cost and marginal cost express information that is already contained in a firm's total cost.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, representing the per-unit production cost.

Marginal Cost

The monetary cost of generating one additional unit of a product or service.

  • Understand the connection among different cost metrics including total cost, average total cost, marginal cost, fixed cost, and variable cost.
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ZK
Zybrea KnightAug 02, 2024
Final Answer :
True
Explanation :
Average total cost (ATC) is calculated by dividing total cost by the quantity of output produced, and marginal cost (MC) is the change in total cost that arises from producing one additional unit of output. Both metrics are derived from the firm's total cost function, thus expressing information contained within it.