Asked by
Rubaiya Maisha
on Dec 08, 2024
Verified
If marginal cost is between average variable cost and average total cost, then
A) both average variable cost and average total cost are increasing.
B) both average variable cost and average total cost are decreasing.
C) average variable cost is increasing and average total cost is decreasing.
D) average variable cost is decreasing and average total cost is increasing.
Average Total Cost
The per unit cost of production, calculated by dividing total cost by the total quantity of output produced.
Average Variable Cost
The total variable costs divided by the quantity of output produced, reflecting the per unit cost of variable inputs.
- Interpret the significance of output alterations on total costs, marginal costs, and average costs.
Verified Answer
TF
Learning Objectives
- Interpret the significance of output alterations on total costs, marginal costs, and average costs.