Asked by
alsome zombie
on Nov 04, 2024
Verified
Average total cost is
A) AFC - AVC.
B) AFC/AVC.
C) AFC + AVC.
D) TFC + TVC.
Average Total Cost
The total cost of production (fixed plus variable costs) divided by the quantity of output produced.
AFC
Average Fixed Cost, which is the fixed costs of production divided by the quantity of output produced; a measure of economies of scale.
AVC
Average Variable Cost is the per-unit variable cost of production, which changes with the level of output.
- Gain an understanding of the key concepts such as Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).
Verified Answer
AC
Learning Objectives
- Gain an understanding of the key concepts such as Marginal Cost (MC), Average Variable Cost (AVC), Average Fixed Cost (AFC), Total Variable Cost (TVC), Total Fixed Cost (TFC), Total Cost (TC), and Average Total Cost (ATC).