Asked by Jaiona Sessoms on Apr 27, 2024
Verified
The cost-output elasticity can be written and calculated as:
A) MC/AC.
B) AC/MC.
C) (AC) (MC) .
D) (AC) 2(MC) .
E) (AC) (MC) 2.
Cost-output Elasticity
A measure of how responsive the cost of production is to a change in the output level.
Marginal Cost
The added expense incurred upon producing one further unit of a good or service.
Average Cost
The total cost of production divided by the quantity of output produced, indicating the cost per unit of output.
- Acquire knowledge on the theory and measurement concerning cost-output elasticity.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
A
Explanation :
Cost-output elasticity is calculated as the ratio of marginal cost (MC) to average cost (AC), which is represented by MC/AC.
Learning Objectives
- Acquire knowledge on the theory and measurement concerning cost-output elasticity.