Asked by
Kishor Gurung
on Oct 12, 2024
Verified
If average variable cost of production falls as output grows
A) marginal cost must also be declining.
B) fixed cost must also be declining.
C) total cost must also be declining.
D) marginal cost must be below average variable cost.
Average Variable Cost
The total variable costs divided by the quantity of output produced, representing the variable cost per unit.
Marginal Cost
The additional cost incurred by producing one more unit of a good or service.
- Determine and explain the average total cost (ATC), average fixed cost (AFC), and average variable cost (AVC) based on the information available.
- Understand the principle of marginal cost and its connection to variable expenses.
Verified Answer
MS
Learning Objectives
- Determine and explain the average total cost (ATC), average fixed cost (AFC), and average variable cost (AVC) based on the information available.
- Understand the principle of marginal cost and its connection to variable expenses.