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Brian Lopez
on Nov 25, 2024

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Marginal cost

A) equals both average variable cost and average total cost at their respective minimums.
B) is the difference between total cost and total variable cost.
C) rises for a time but then begins to decline when diminishing returns set in.
D) declines continuously as output increases.

Marginal Cost

The cost of producing one additional unit of a product or service.

Average Variable Cost

Average Variable Cost is the variable cost per unit of output, calculated by dividing total variable costs by total output, illustrating how variable costs change with output levels.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a particular time period.

  • Comprehend the principle of marginal cost and how to calculate it.
  • Comprehend the dynamics of cost curves, encompassing both average and marginal cost associations.
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Promise WarrenNov 29, 2024
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