Asked by
Olivia Stone
on Oct 12, 2024Verified
If ATC is $100,AVC is $90 and MC is $80,then
A) ATC is rising and AVC is rising.
B) ATC is falling and AVC is falling.
C) ATC is rising and AVC is falling.
D) ATC is falling and AVC is rising.
ATC
Average Total Cost, the sum of all production costs divided by the quantity of output produced, reflecting the average cost per unit of output.
AVC
Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.
MC
Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.
- Develop an understanding of the relationship that exists among average total cost (ATC), marginal cost (MC), and average variable cost (AVC).
Verified Answer
HB
Learning Objectives
- Develop an understanding of the relationship that exists among average total cost (ATC), marginal cost (MC), and average variable cost (AVC).