Asked by
Brian Lopez
on Nov 25, 2024Verified
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.
Verified Answer
PW
Learning Objectives
- Comprehend the principle of marginal cost and how to calculate it.
- Comprehend the dynamics of cost curves, encompassing both average and marginal cost associations.