Asked by
Cameron Blair
on Nov 30, 2024
Verified
If MC is $100,ATC is $90 and AVC 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 total cost of production (fixed plus variable costs) divided by the total quantity of output produced, representing the average cost per unit of output.
AVC
Average Variable Cost, the cost a company incurs to produce one additional unit of product, excluding fixed costs.
- Comprehend the relationship between average total cost (ATC), marginal cost (MC), and average variable cost (AVC).
Verified Answer
AC
Learning Objectives
- Comprehend the relationship between average total cost (ATC), marginal cost (MC), and average variable cost (AVC).